Company Number: 15237471

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM
   The company demonstrates substantial fixed assets in investment properties but shows significant net current liabilities and a negative working capital position. While it is newly incorporated with no overdue filings, the liquidity risk arising from a large creditor balance and current liabilities exceeding current assets warrants caution.

2. Key Concerns:

• Negative net current assets of £401,362 indicate potential short-term liquidity pressure to meet obligations falling due within one year.
• Significant amounts owed to related parties and other creditors (£780,909 current plus £221,300 long-term loans) could suggest reliance on external funding rather than operational cash flow.
• Limited equity base (£99,831) relative to total assets and high gearing increases solvency risk if asset values decline or cash flow deteriorates.

3. Positive Indicators:

• Substantial investment property assets valued at £745,287 provide a strong asset base that could be leveraged or sold if needed.
• No overdue statutory filings indicates good compliance and governance practices.
• Directors have experience (two managing directors appointed) and related-party structure suggests aligned ownership and control.

4. Due Diligence Notes:

• Assess the nature and terms of the intercompany loan and other creditor balances, specifically repayment terms, interest, and security arrangements.
• Review cash flow forecasts and rent roll or income streams from investment properties to evaluate ongoing operational sustainability.
• Verify the valuation methodology for investment properties and check for any impairments or contingent liabilities.
• Investigate the extent of related party transactions and potential conflicts of interest or dependence.
• Confirm the absence of any director conduct issues or regulatory risks.