Company Number: 12804658

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

1. Risk Rating: HIGH
   This rating is due to significant liquidity concerns evidenced by large negative net current assets over multiple years and a substantial creditor balance maturing within one year, coupled with a relatively small equity base.

2. Key Concerns:

• Liquidity Deficit: The company has persistently negative net current assets (e.g., -£257,465 in 2024) indicating an inability to cover short-term liabilities with current assets.
• High Short-Term Creditors: Current liabilities remain high (e.g., £384,653 in 2024) compared to current assets, suggesting pressure on working capital and potential cash flow constraints.
• Long-Term Borrowings: The introduction of a substantial creditor balance falling due after more than one year (£561,950 in 2024) raises questions about the terms and servicing of this debt and its impact on solvency.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets have remained steady at £843,062 over the years, indicating some tangible asset backing.
• No Overdue Filings: The company has maintained up-to-date statutory accounts and confirmation statements, reflecting compliance with regulatory requirements.
• Experienced Directors: The directors have been in place since incorporation, providing continuity in governance.

4. Due Diligence Notes:

• Debt Structure and Covenants: Investigate the nature and terms of the creditor amounts falling due after more than one year, including interest rates, repayment schedules, and any covenant obligations.
• Cash Flow Analysis: Request detailed cash flow statements or bank statements to assess actual liquidity and ability to meet short-term obligations.
• Operational Model and Revenue Streams: As financials show no employees and substantial real estate assets, clarify the company’s operational model, revenue generation, and sustainability.
• Related Party Transactions: Given significant shareholding by directors, review any related party transactions or guarantees impacting financial position.
• Asset Valuation: Verify the valuation of fixed assets to confirm their realizable value in a stressed scenario.