Company Number: 12809439

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by its persistent negative net assets and negative net current assets over multiple years. Current liabilities substantially exceed current assets, indicating liquidity concerns. The absence of employees and reliance on director loans raise questions about operational sustainability.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: Net assets have been negative since 2022 and net current liabilities exceed £990k in 2024, signaling ongoing solvency challenges.
• Dependence on Director Loans: Current liabilities largely consist of amounts owed to directors (£996,123 in 2024), indicating reliance on related-party funding rather than external financing or operational cash flow.
• No Employees and Limited Operational Activity: The company has reported zero employees and minimal current assets, suggesting limited business operations and potential challenges in generating sustainable income.

3. Positive Indicators:

• Timely Filing Compliance: The company is current with its filing obligations for both accounts and confirmation statements, reducing regulatory risk.
• Consistent Fixed Asset Base: The company maintains a substantial fixed asset base (~£956k), presumably property assets aligned with its SIC code related to real estate letting, which could provide collateral value.
• Stable Directorship: Directors have been in position since incorporation with no indication of disqualification or governance issues reported.

4. Due Diligence Notes:

• Clarify Nature and Terms of Director Loans: Investigate the terms of the directors’ advances to understand repayment schedules and whether these represent long-term financing or temporary support.
• Assess Revenue Streams and Cash Flow: Obtain detailed income statements and cash flow forecasts to evaluate operational viability and potential to reduce reliance on director funding.
• Review Asset Valuation: Confirm the valuation and marketability of fixed assets to assess potential for liquidation or refinancing in distress scenarios.
• Investigate Future Business Plans: Understand whether there are plans to improve trading performance, reduce liabilities, or raise external capital to address the negative equity position.