Company Number: 13371037

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position, but the high level of long-term liabilities compared to net assets and relatively low cash balances indicate potential solvency and liquidity risks.

2. Key Concerns:

• High Long-Term Debt: The company has significant bank loans (£893,718) and other creditors (£267,600) due after more than one year, which considerably exceed the net asset value (£55,488).
• Low Cash Reserves: Cash on hand is minimal (£9,400), which may strain the company’s ability to meet short-term obligations despite positive net current assets.
• Debtor Concentration: Debtors amount to £522,000, a substantial portion of current assets, potentially indicating concentration risk or collection delays impacting liquidity.

3. Positive Indicators:

• Consistent Net Current Asset Surplus: The company maintains a positive net current asset position (£428,877), suggesting working capital adequacy at reporting date.
• Stable Asset Base: Tangible fixed assets in the form of freehold property valued at £792,679 provide a solid asset backing.
• Up-to-Date Filings: No overdue accounts or confirmation statements, indicating regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Verify the terms and repayment schedule of the bank loans and other creditors to assess near-term cash flow impact.
• Investigate the nature and collectability of debtors, including any concentration or aging issues.
• Review the company’s cash flow statements and forecasts for liquidity sufficiency given low cash balances.
• Confirm absence of director disqualifications or other governance issues beyond currently available data.
• Assess market conditions and rental income stability given the company’s SIC code related to real estate letting.