Company Number: 13603606

Analysis Date: 2025-07-29 13:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with current liabilities far exceeding current assets, leading to a negative net working capital position. Although it holds investment properties, the very low cash reserves and high short-term obligations pose a solvency risk.

2. Key Concerns:

• Negative net current assets consistently over the last four years (approx. -£47k to -£51k) indicate persistent liquidity shortfalls.
• Very low cash balances (£603 in 2024) relative to current liabilities (£51,838) suggest difficulty in meeting immediate obligations.
• Small net asset base (£5,063 in 2024) provides limited buffer against financial distress or market downturns.

3. Positive Indicators:

• The company holds substantial fixed assets primarily investment properties valued at approximately £97k, which are revalued annually, providing some asset backing.
• Accounts and confirmation statements are filed on time with no overdue filings, indicating regulatory compliance and governance discipline.
• The company has been consistently active since incorporation in 2021, with no signs of insolvency proceedings.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, especially if any are related party loans or have onerous repayment schedules.
• Confirm the liquidity position beyond the balance sheet snapshot, including cash flow forecasts and rental income stability from investment properties.
• Review directors’ management plans for addressing the working capital deficit and long-term financial strategy.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in current accounts.
• Verify the valuation methodology and market conditions impacting the investment property valuations.