Company Number: 13166230

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant liquidity issues indicated by persistent and growing net current liabilities, and reliance on related party loans. The limited equity buffer and negative working capital raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Constraints: The company’s current liabilities (£151,376) substantially exceed current assets (£4,768) as of March 2024, resulting in a net current liability position of £146,608, deteriorated from the previous year. Cash reserves have sharply declined from £55,055 in 2023 to £4,468 in 2024.
• Dependence on Related Party Funding: A material loan balance of £129,904 is owed to a related party (G Squared Surveying Ltd), indicating possible dependence on insider financing, which may not be sustainable or at arm’s length. No interest charged suggests informal arrangements.
• Negative and Minimal Equity: Shareholders’ funds remain very low at £10,149, though improved from prior years, but still minimal relative to total liabilities. This reflects limited capital cushion to absorb losses or financial shocks.

3. Positive Indicators:

• Investment Property Growth: The fair value of investment property increased significantly from £93,533 in 2023 to £224,892 in 2024, indicating asset growth and potential for future income generation or capital appreciation.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, minimizing regulatory risks related to compliance.
• Stable Management and Control: The same two directors and significant controllers since incorporation suggest stable governance structure without director turnover risks.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party loan from G Squared Surveying Ltd, including repayment plans, security, and any contingencies.
• Review cash flow statements and rent roll to assess actual operating cash flows, sustainability of rental income, and timing of liabilities.
• Confirm valuation methodology and marketability of investment property assets to assess realizable value and liquidity potential.
• Assess potential contingent liabilities or off-balance sheet obligations not reflected in current accounts.
• Verify plans or capital injections intended to remedy the working capital deficit and improve financial stability.