Company Number: 14672813

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and negative net assets shortly after incorporation, indicating immediate solvency concerns. The large director loan and reliance on bank financing increase financial risk.

2. Key Concerns:

• Negative net current assets of £2,167,577 suggest liquidity constraints, raising questions about the company’s ability to meet short-term obligations.
• Net liabilities of £46,945 despite holding investment property valued at £3.84 million imply substantial debt and funding structure risk.
• Director’s loan of over £2.1 million indicates dependency on related party funding, which may affect financial stability and governance.

3. Positive Indicators:

• The company owns investment property valued at £3.84 million, a significant fixed asset base that could support future cash flows or refinancing.
• All statutory filings are up to date with no overdue accounts or confirmation statements, reflecting compliance and good governance practices so far.
• The company is actively managed by a single director with full control, enabling swift decision-making.

4. Due Diligence Notes:

• Investigate the terms, interest, and repayment schedule of the bank loans totaling £1.72 million and director’s loan of £2.15 million to assess repayment risk and covenant compliance.
• Review cash flow forecasts and rent roll (if applicable) to evaluate operational sustainability and ability to service liabilities.
• Confirm valuation methodology and marketability of the investment property to understand asset liquidity and potential impairment risk.
• Examine related party transactions, particularly the director’s loan, for proper disclosure and arm’s length terms.
• Assess the business model and revenue generation plans since no turnover or income statement is provided due to small company exemptions.