Company Number: 13289082

Analysis Date: 2025-07-29 14:33 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent and significant net current liabilities over multiple years, indicating liquidity and working capital constraints. The current liabilities, largely comprising directors' current accounts, substantially exceed current assets, signifying potential difficulties in meeting short-term obligations. Although net assets remain positive due to investment property revaluation, the operational cash resources are minimal, raising solvency concerns.

2. Key Concerns:

• Severe liquidity shortfall: Net current liabilities of approximately £182,580 as of the latest year-end, with cash reserves at only £1,354.
• High reliance on directors’ current accounts (£184,175) as a financing source, which may be subject to recall or dispute.
• Absence of employees and minimal operational activity, suggesting limited ongoing business operations and potential sustainability issues.

3. Positive Indicators:

• Ownership of investment property valued at £202,000, which provides a tangible asset base and potential collateral value.
• Incremental increase in fair value reserve reflecting modest appreciation of investment property.
• No overdue filings or regulatory compliance issues noted; accounts and confirmation statements are up to date.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors’ current accounts liability, including repayment schedules and any formal agreements.
• Review cash flow forecasts and working capital management plans to assess how short-term liabilities will be met.
• Clarify the company's business model and revenue generation capacity given the lack of employees.
• Confirm whether the investment property is income-generating and examine the sustainability of property valuations.
• Assess any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.