Company Number: 13438085

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity risk with current liabilities far exceeding current assets, resulting in large net current liabilities. The company is dormant but carries substantial short-term creditor balances, especially a large loan from the director, which may strain solvency if not serviced or refinanced.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of approximately £500k indicate inability to meet short-term obligations from available current assets.
• Director Loan Dependency: Over £520k owed to the director as a creditor raises concerns about reliance on related party funding and potential conflicts of interest or repayment risk.
• Operational Dormancy: The company is classified dormant with no employees and no trading activity, yet carries significant liabilities, questioning sustainability and business purpose.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £517k, which is a tangible asset base that could potentially be leveraged or sold to address liabilities.
• Compliance with Filings: No overdue accounts or confirmation statements, showing regulatory compliance to date.
• Shareholders’ Funds Positive: Despite liquidity issues, the company shows positive net assets (£16,426), indicating some asset value above liabilities on a total basis.

4. Due Diligence Notes:

• Investigate terms, security, and repayment schedule of the director loan to assess refinancing risk and potential liabilities crystallizing.
• Clarify the reason for dormant classification despite significant creditor balances and investment property holdings.
• Review cash flow forecasts or plans for asset monetization to cover current liabilities.
• Confirm no undisclosed contingent liabilities or regulatory issues given the dormant status but material creditor balances.
• Assess the director’s intentions and financial capacity to continue supporting the company.