Company Number: 14283794

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH

The company demonstrates significant financial risk primarily due to persistent negative net current assets and minimal equity base, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative Working Capital: The company shows net current liabilities of £614,754 consistently over multiple years, suggesting current liabilities exceed current assets by a substantial margin.
• Minimal Equity and Share Capital: Shareholders’ funds and net assets are reported as £3, which is negligible compared to liabilities, raising concerns on the company’s capital adequacy and ability to absorb losses.
• Investment Valuation and Related Party Debt: The fixed asset value is entirely composed of investments (£614,754) that match the amount owed to group undertakings. This related party debt structure may mask underlying liquidity issues and raises questions about the nature and recoverability of these balances.

3. Positive Indicators:

• Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, indicating regulatory compliance and no immediate governance concerns.
• Clear Control Structure: The presence of identified persons with significant control and a named director suggests transparency in ownership and management.
• Exemption from Audit: As a small company under FRS 102 Section 1A, the accounts prepared are in accordance with applicable accounting standards without material departures.

4. Due Diligence Notes:

• Nature and Recoverability of Investments: Investigate the composition and valuation of the £614,754 investment assets, including the financial health of any subsidiaries or related entities.
• Intercompany Balances: Review the terms and collectability of amounts owed to group undertakings, including any guarantees or repayment schedules.
• Operational Activity and Cash Flows: Given zero employees and significant liabilities, assess the company’s operational model, revenue generation, and cash flow sufficiency.
• Director and Shareholder Intentions: Clarify the strategic plan for addressing the negative working capital and minimal equity, including any plans for capital injection or restructuring.