Company Number: 13787144

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, reflected by persistent negative net current assets and negative shareholders' funds over multiple years, indicating financial distress.

2. Key Concerns:

• Consistent Negative Working Capital: Net current liabilities remain substantially high (£83,927 in 2024), suggesting difficulties in meeting short-term obligations.
• Negative Shareholders' Funds: The company has a negative equity position (-£734 in 2024), though improved from prior years, still indicating capital deficiency.
• High Reliance on Debt Financing: Substantial bank loans (£68,807 due after one year and £4,000 current) relative to cash and assets may challenge operational sustainability, particularly given no employees and limited current assets.

3. Positive Indicators:

• Stable Investment Property Asset: The company holds an investment property valued at £152,000, which is a tangible asset and has remained consistent in fair value year-on-year.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating compliance with statutory requirements.
• Experienced Directors: Two directors with clear control and consistent appointment since incorporation, which may provide stable governance.

4. Due Diligence Notes:

• Cash Flow and Debt Servicing: Investigate cash flow statements and repayment schedules for bank loans to assess liquidity under operational conditions.
• Investment Property Valuation: Review the basis and independence of the directors’ fair value assessment of the investment property to confirm asset reliability.
• Future Business Plan: Understand the company’s strategy to address negative equity and working capital deficits, including potential capital injections or refinancing options.
• Related Party Transactions: Verify whether any significant creditors or debtors relate to directors or related parties, given the concentration of control.