Company Number: 12892687

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: MEDIUM
   The company shows some positive equity growth and asset stability; however, significant current liabilities and large long-term creditors relative to current assets pose moderate solvency and liquidity risks.

2. Key Concerns:

• Current liabilities substantially exceed current assets (2024: £77k vs £548k), indicating potential liquidity constraints despite reported net current assets, which appear misstated or inconsistently presented.
• Material long-term liabilities (£548k) closely match fixed assets (~£505k), suggesting high leverage and potential refinancing risk.
• Negative net assets in earlier years and only marginal positive shareholders’ funds (£26.8k in 2024) limit financial buffer to absorb adverse events.

3. Positive Indicators:

• Consistent fixed asset base indicative of underlying property or development assets.
• Improvement in net assets from negative in 2021 to positive in 2024 shows some financial recovery or capital injection.
• Compliance with filing deadlines with up-to-date accounts and confirmation statements reduces regulatory risk.

4. Due Diligence Notes:

• Clarify the nature and terms of the large long-term liabilities, including repayment schedules, interest rates, and creditor identity.
• Verify the accuracy of current asset and liability classifications, especially given the apparent inconsistency in net current assets calculations.
• Review cash flow statements or management accounts to assess liquidity generation and operational cash requirements.
• Understand the ownership structure and related party transactions given the significant shareholding by Fourten Investments Limited and directors.