Company Number: 14761939

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency and liquidity risk primarily due to significant current liabilities exceeding current assets by over £1.2 million, resulting in negative net working capital. Although it holds substantial fixed assets, the imbalance between short-term liabilities and liquid assets suggests potential cash flow difficulties in meeting obligations as they fall due.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£1,638,446) far exceed current assets (£419,194), indicating potential liquidity strain.
• High Short-Term Debt Levels: Bank loans within one year total £845,646, representing a substantial repayment burden shortly after incorporation.
• Limited Operational History and Scale: Incorporated in March 2023 with only one employee on average during the period, the company has limited track record to demonstrate ongoing operational stability or revenue generation.

3. Positive Indicators:

• Significant Fixed Asset Base: Fixed assets, notably investment property valued at £1.83 million, provide underlying collateral value.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating good compliance with regulatory requirements.
• Clear Ownership and Control: Directors and persons with significant control are identified, with no indications of director disqualifications or governance concerns.

4. Due Diligence Notes:

• Review terms and repayment schedules of the bank loans and other creditors to assess refinancing risks and covenant compliance.
• Investigate the nature and valuation methodology of the investment property to confirm realizable value under current market conditions.
• Ascertain revenue generation, profitability, and cash flow forecasts beyond the first financial period to evaluate sustainability.
• Verify any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Confirm the reason for the director resignation shortly after incorporation and any impact on governance or strategy.