Company Number: 12789197

Analysis Date: 2025-07-20 16:46 UTC

1. Risk Rating: HIGH

Justification: The company’s financial structure shows a very high level of long-term liabilities (£1,990,455) almost equal to its fixed assets (£1,978,557), with minimal net assets (£3,060). Current assets are negligible (£15,977) compared to current liabilities (£1,990,455 reported, but note discrepancy in notes showing only £1,019 current liabilities—assuming main credit is long-term). This indicates a leveraged position with weak equity buffer and potential solvency concerns.

2. Key Concerns:

• Solvency Risk: Net assets are extremely low (£3,060) relative to total liabilities, suggesting very thin equity and limited capacity to absorb losses.
• Liquidity Concerns: Current assets are minimal and there is a relatively high level of current liabilities (noting some inconsistency in the reported values to clarify). The company has zero employees, indicating no operational workforce and possible limited operational activity.
• Operational Stability: No employees and minimal turnover (micro-entity status) raise questions about ongoing sustainability and business activity. The repeated appointment and resignation of the same director within short periods could suggest governance instability.

3. Positive Indicators:

• Timely filings: Accounts and confirmation statements are up to date, with no overdue filings or penalties.
• Fixed assets have increased significantly from £439,936 in 2020 to £1,978,557 in 2024, indicating asset growth which may be property portfolio expansion.
• The company is active and maintains compliance with regulatory filing requirements.

4. Due Diligence Notes:

• Verify the nature of the long-term creditors (£1,990,455) and the terms of these liabilities, including repayment schedules and covenants.
• Clarify the discrepancy in current liabilities reported in different sections (£1,990,455 vs. £1,019).
• Investigate the operational status and revenue streams given no reported employees and micro-entity classification.
• Assess director stability and governance practices given the repeated short-term appointments and resignations of Mr Brinder Singh Dhatt.
• Review the detailed accounts notes for any contingent liabilities or off-balance sheet exposures.