Company Number: 14383913

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets and shareholders' funds. The large creditor balances relative to current assets and ongoing losses indicate financial distress.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£158,081) far exceed current assets (£5,408), resulting in a substantial working capital deficit (-£82,501), which challenges short-term liquidity and operational cash flow.
• Negative Shareholders’ Funds: The company’s net liabilities (-£10,975) and negative equity reflect accumulated losses or capital deficits, raising doubts about the company’s ability to sustain operations without external financing or restructuring.
• Concentration of Control: A single individual controls 75-100% of shares and voting rights, which could pose governance risks and limit checks and balances in decision-making.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £229,607, which is stable year-over-year and secured against a bank loan. This asset base could provide collateral value for creditors or potential refinancing.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance to date.
• No Employees: With no staff employed, operating expenses related to payroll may be minimal, potentially reducing ongoing cash outflows.

4. Due Diligence Notes:

• Loan Terms and Covenants: Investigate the bank loan secured against investment property, including repayment schedules, interest rates, and covenant compliance given the negative net asset position.
• Cash Flow Forecasts: Review management’s cash flow projections to assess the company’s ability to meet short-term liabilities and service debt.
• Valuation of Investment Property: Confirm the director’s valuation methodology and consider obtaining an independent valuation to validate asset values and loan security.
• Related Party Transactions: Given sole control by one individual, review any related party transactions or loans that may affect financial stability.
• Business Model Viability: Understand the company’s strategy for improving financial health and generating sustainable income, as no turnover or profit figures are provided.