Company Number: 12931857

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders' funds, indicating ongoing working capital deficits and erosion of equity. The reliance on director and related party loans for funding, combined with overdue statutory filings, raises concerns about financial stability and governance.

2. Key Concerns:

• Solvency Risk: Negative shareholders' funds (£ -7,896 at 31/12/2023) and net current liabilities (£ -7,796) reflect that liabilities exceed assets, signaling potential solvency issues.
• Liquidity Concerns: Minimal cash balances (£1,111) against high current liabilities (£513,776) suggest tight liquidity with limited cash to meet short-term obligations.
• Regulatory Compliance: The company has overdue confirmation statement filings as of 2024-10-19, indicating non-compliance with statutory requirements, which can attract penalties or enforcement actions.

3. Positive Indicators:

• The company is active and has filed recent full accounts up to 31 December 2023 without audit exemption concerns.
• Directors have confirmed going concern assumptions supported by ongoing working capital injections.
• There is no indication of formal insolvency procedures such as liquidation or administration.

4. Due Diligence Notes:

• Investigate the nature, terms, and sustainability of director and related party loans (£445,898 and £66,628 respectively), including any repayment plans or risk of calls.
• Review the company’s business plan and project pipeline in the building development sector (SIC 41100) to assess operational viability and cash flow forecasts.
• Confirm the status and reasons for overdue confirmation statement to evaluate governance and compliance risk.
• Analyze whether negative equity is a result of accumulated losses, revaluation adjustments, or other accounting factors.
• Assess the adequacy of working capital support and the directors' commitment to maintaining solvency going forward.