Company Number: 13799730

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk due to current liabilities vastly exceeding current assets and a negative net working capital position as of the latest financial year. This raises concerns over its ability to meet short-term obligations despite positive net assets driven by fixed assets.

2. Key Concerns:

• Liquidity Deficit: Current liabilities of £4.27M versus current assets of £110.5k (including cash of £73.9k) result in a net current liability of £8,943, indicating potential cash flow constraints.
• Concentration of Assets in Fixed Assets: The balance sheet is heavily weighted towards investment property (£5.85M), which may not be readily liquidated to cover short-term debts.
• Negative Profit & Loss Reserve Movement: The retained earnings have declined from £217.9k in 2022 to £175.1k in 2023, suggesting operational losses or distributions exceeding profits.

3. Positive Indicators:

• Solid Net Asset Position: Shareholders’ funds remain positive at approximately £1.5M, providing a buffer against insolvency.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements.
• Long-Term Property Assets: The presence of investment property valued consistently around £5.85M supports the company’s asset base and potential collateral value.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the significant current liabilities (£4.27M) to assess refinancing risk or potential defaults.
• Review cash flow statements and management forecasts to determine operational cash generation and ability to service debts.
• Assess whether the investment property is generating rental income or if it is held for capital appreciation.
• Confirm the identity and roles of persons with significant control, particularly given their residence outside the UK, to evaluate governance and decision-making practices.
• Verify the absence of contingent liabilities or off-balance sheet commitments that could exacerbate financial risk.