Company Number: 14669773

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets (£-217,726) and net liabilities (£-21,783) shortly after incorporation. The substantial current liabilities (£220,113) and long-term bank loans (£574,057) compared to very limited current assets (£2,387) indicate a high solvency and liquidity risk.

2. Key Concerns:

• Negative working capital position with current liabilities vastly exceeding current assets, raising immediate liquidity concerns.
• Net liabilities and negative shareholders’ funds suggest the company is currently insolvent on a balance sheet basis.
• The company has incurred a loss before tax (£21,883) in its first period, with no turnover recorded, indicating operational challenges in generating revenue to meet expenses and service debt.

3. Positive Indicators:

• The company holds investment property valued at £770,000 which is a significant asset that may provide future income or capital gains.
• The director has made timely filings with no overdue accounts or confirmation statements, reflecting good regulatory compliance so far.
• The company is newly incorporated (2023) and may still be in a start-up or acquisition phase, explaining the absence of turnover and initial losses.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans (£574,057) including covenants, repayment schedules, and security interests against the investment property.
• Clarify the company’s business plan for generating turnover and profitability, including timelines and market conditions for selling or developing the investment property.
• Review the relationship and financial support from the major shareholder (Fw Property Group Limited) who controls 75-100% of shares and voting rights, to assess potential capital injections or guarantees.
• Confirm the valuation methodology and assumptions for the investment property to ensure asset values are reliable under current market conditions.