Company Number: 12565462

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets and large long-term liabilities exceeding total assets. This indicates potential difficulties in meeting obligations. The liquidity position is also weak, with current assets far below current liabilities, raising immediate cash flow concerns.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have declined to -£42,515 in 2024 from positive figures in prior years, signaling insolvency risk.
• High Long-Term and Current Liabilities: Creditors due after one year stand at £4.56 million, surpassing fixed assets, while current liabilities remain over £2.2 million against minimal current assets (£13.6k), indicating poor short-term liquidity.
• No Employees and Minimal Share Capital: Operating with zero employees and a nominal share capital of £100 may suggest limited operational capacity or reliance on external contractors, which could impact business sustainability.

3. Positive Indicators:

• Growing Fixed Assets: Fixed assets have increased substantially from £0.8m in 2020 to £6.7m in 2024, indicating asset accumulation which could be leveraged or sold to improve liquidity.
• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, demonstrating compliance with statutory requirements.
• Established Directors: Two directors with consistent appointment and no disqualification records suggest stable governance at the board level.

4. Due Diligence Notes:

• Clarify Nature of Liabilities: Detailed review of creditor composition, especially long-term debts, to assess repayment terms and refinancing risk.
• Cash Flow Analysis: Examine recent cash flow statements or bank reconciliations not included in micro-entity accounts to evaluate liquidity management.
• Asset Valuation and Realizability: Verify the valuation and marketability of fixed assets (likely property holdings given SIC code 68100) to determine potential for conversion to cash if needed.
• Business Model and Revenue Streams: Understand operational stability given no employees and micro-entity reporting, including revenue generation and dependence on external parties.

Executive Summary