Company Number: 14068620

Analysis Date: 2025-07-29 15:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency risks due to substantial current liabilities far exceeding current assets and heavy reliance on director loan accounts to finance operations.

2. Key Concerns:

• Negative net current assets of £225,284 as of 30 April 2024 indicate an inability to cover short-term liabilities with liquid assets, raising liquidity concerns.
• Large creditor balance (£288,960) mostly consisting of director loan accounts (£273,844) suggests dependence on director financing rather than external funding or operational cash flow.
• The company is relatively new (incorporated in April 2022) with limited financial track record and small equity base (£34,173), increasing operational risk and uncertainty about sustainability.

3. Positive Indicators:

• The investment property asset is fairly valued at £259,457 and has remained stable since prior year, providing a tangible asset base.
• The company reported a profit of £31,351 in the latest year, increasing equity from £2,822 to £34,173, demonstrating some operational profitability.
• Compliance with timely filing of accounts and confirmation statements indicates good regulatory adherence and governance.

4. Due Diligence Notes:

• Investigate the terms, repayment schedule, and sustainability of director loan accounts; reliance on these loans is a red flag for financial stability.
• Review cash flow statements and projected income streams from both management consultancy and investment property rental to assess operational cash generation capacity.
• Confirm valuation methodology and market comparables used for investment property to verify asset quality and realizable value.
• Assess customer base, contracts, and revenue stability in management consultancy to evaluate business sustainability.