Company Number: 12440641

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net liabilities and a large negative working capital position, indicating struggles to meet current obligations.

2. Key Concerns:

• Severe Negative Net Current Assets: The company has net current liabilities of £341,336 as at 29 Feb 2024, worsening from prior years, signaling liquidity distress.
• Negative Shareholders’ Funds: The company’s shareholders’ deficit stands at £8,464, demonstrating accumulated losses and erosion of equity.
• Substantial Current Liabilities: Creditors due within one year of £343,775 far exceed current assets, raising questions on the ability to cover short-term debts.

3. Positive Indicators:

• Investment Property Asset Base: The company holds tangible investment property assets valued at £332,872, which could provide value if liquidated or leveraged.
• No Overdue Filings: Accounts and confirmation statements are filed on time, showing regulatory compliance and governance discipline.
• Stable Director Structure: The company has multiple directors with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Examine Nature and Terms of Creditors: Investigate composition, maturity, and creditor relationships to assess risk of enforcement or restructuring needs.
• Review Cash Flow and Profit Generation: Obtain management accounts to evaluate operating cash generation and plans to address negative working capital.
• Assess Valuation and Marketability of Investment Properties: Confirm valuation methodology and ability to realize asset value under current market conditions.
• Explore Group or Related Party Support: Determine if directors or related parties provide financial support to sustain operations given cash constraints.