Company Number: 13117253

Analysis Date: 2025-07-19 13:05 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and significant net current liabilities, indicating solvency and liquidity risks. The liabilities notably exceed current assets, and shareholders’ funds are negative, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£573,459) substantially exceed its cash and other current assets (£28,486), resulting in a large working capital deficit (£-544,973). This suggests potential liquidity stress.
• Negative Shareholders’ Funds: Shareholders’ funds have deteriorated from £218 in 2021 to £-4,336 in 2024, signaling accumulated losses or erosion of equity capital, which undermines solvency.
• Lack of Income Statement Details: The absence of an income statement limits insight into profitability and operational cash flows, making it difficult to assess sustainability and ongoing performance.

3. Positive Indicators:

• Stable Investment Property Asset: Fixed assets remain constant at £540,642, representing investment property held at fair value. This is a potentially valuable asset base underpinning the company’s operations.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance discipline.
• Established Directorship: The company has a stable board of directors with five current directors appointed since incorporation, suggesting continuity in management.

4. Due Diligence Notes:

• Obtain detailed income statements and cash flow statements to evaluate operational profitability and cash generation capacity.
• Investigate the nature and terms of the bank loans (£430,945) and other creditors to assess refinancing risk and covenant compliance.
• Review any contingent liabilities or off-balance sheet exposures related to the investment property or other obligations.
• Assess the directors’ plans to address negative equity and liquidity shortfalls, including any capital injections or asset disposals.
• Confirm the valuation methodology and marketability of the investment property to understand asset realizability under distress.