Company Number: 13104881

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: HIGH

Justification: The company shows ongoing insolvency with net current liabilities and a negative working capital position. The director’s financial support is explicitly noted as necessary to maintain going concern status. Heavy reliance on bank loans and significant overdue liabilities relative to current assets indicate elevated solvency and liquidity risks.

2. Key Concerns:

• Persistent negative net current assets (£-113,634 in 2023) and zero cash on hand, indicating potential liquidity strain.
• Heavy reliance on bank loans (£216,813 total, combining current and non-current), increasing financial leverage and risk exposure.
• Operating losses reflected in declining profit and loss reserves, suggesting challenges in achieving operational profitability or sustainability.

3. Positive Indicators:

• Ownership and control are consolidated under a single director who is actively involved and has confirmed ongoing financial support.
• Investment property asset base remains stable at £322,908 with valuations supported by external bank mortgage valuations.
• Company maintains up-to-date filings with no overdue accounts or confirmation statements, indicating regulatory compliance.

4. Due Diligence Notes:

• Review banking and loan agreements to understand covenants, maturity profiles, and terms of the bank loans and overdrafts.
• Assess the director’s financial capacity and commitment to continue supporting the company given the insolvent position.
• Obtain detailed operating performance data beyond balance sheet to evaluate revenue streams, cash flows, and prospects for returning to profitability.
• Investigate the valuation methodology of investment properties to confirm asset realizable value under current market conditions.
• Confirm absence of director disqualifications or governance concerns given sole control by one individual.