Company Number: 13177421

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to current liabilities vastly exceeding current assets, resulting in a large negative net working capital position. The net asset position has only recently turned positive, driven solely by revaluation of investment property rather than operational profitability or cash generation.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities of £926,039 compared to current assets of £45,749 (mainly cash) creates a severe working capital deficit (-£880,290), indicating potential short-term liquidity strain.
• Reliance on Investment Property Valuation: Fixed assets consist almost entirely of one investment property valued at £897,995 with no change year-on-year. This balance sheet strength is illiquid and dependent on market conditions for realization.
• Lack of Operating Activity and Profitability: The company employs zero staff and provides no profit and loss account, suggesting minimal or no trading income; the retained earnings position improved due to reversal of losses mainly driven by fair value accounting rather than operational cash flow.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Recent Net Asset Improvement: Shareholders’ funds improved from a deficit of £25,768 to a positive £17,706, reflecting asset revaluation gains rather than operational risks.
• Experienced Directors: Two directors have been in place since incorporation, with no adverse records disclosed.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities (£926k), including creditor identities, payment schedules, and any potential covenant or default risks.
• Review detailed cash flow statements and profit and loss accounts (not filed publicly) to understand operational income, expenses, and sustainability.
• Confirm the valuation methodology and marketability of the investment property to assess the realism of the reported asset value.
• Examine any off-balance-sheet liabilities or contingent liabilities not apparent in the accounts.
• Verify if the company has any financing arrangements or plans to address the working capital deficit.