Company Number: 13528361

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

1. Risk Rating: HIGH

Justification: The company reports significant net current liabilities and negative shareholders’ funds despite substantial fixed assets. The net liabilities position and heavy reliance on long-term creditors point to potential solvency and liquidity risks. Although the directors assert going concern, the financial structure raises concerns about meeting short-term obligations without additional financing.

2. Key Concerns:

• Negative Net Current Assets: As at 31 July 2024, net current liabilities stand at approximately £990k, worsening from prior years, indicating liquidity pressures.
• Negative Shareholders’ Funds: The company shows a net liabilities position of around £36k, reflecting accumulated losses or insufficient equity buffer.
• High Long-Term Creditors: With over £5.19m of creditors due after more than one year, the company appears heavily leveraged, which may strain cash flows if refinancing is not available.

3. Positive Indicators:

• Fixed Assets Growth: The company’s fixed assets increased from £5.4m to £6.15m over the year, showing ongoing investment or asset acquisition aligned with its construction and development activities.
• No Overdue Filings: The company is current on its statutory accounts and confirmation statement, indicating compliance with regulatory requirements.
• Stable Management: Directors have been consistent since incorporation, and there is full ownership transparency with key individuals controlling the company.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors (£5.19m) to assess repayment schedules, interest obligations, and refinancing risks.
• Investigate underlying causes of the negative working capital trend and any mitigating cash flow arrangements or credit facilities.
• Examine the valuation and liquidity of fixed assets, especially investments, to understand if they can support debt or be monetized if required.
• Confirm the going concern assumptions and supporting cash flow forecasts prepared by the directors.
• Evaluate related party transactions or financial support from shareholders given the significant shareholding by Miss Michelle Lisa Katz.