Company Number: 13887857

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: MEDIUM
   The company is currently active with no overdue filings, which supports regulatory compliance. However, the balance sheet shows net liabilities and significant long-term borrowings relative to equity, indicating moderate solvency risk. Cash balances are low compared to current liabilities, raising liquidity concerns.

2. Key Concerns:

• Negative Shareholders’ Funds: The company reported net liabilities of £11,525 at the latest year-end, reflecting accumulated losses and a negative equity base, which may impair solvency.
• High Long-Term Liabilities: Creditors due after one year total £932,521, substantially exceeding current assets and shareholders’ funds, suggesting leverage risk that could pressure cash flows.
• Low Cash Reserves: Cash on hand is only £12,919 despite current liabilities of £259,049, potentially indicating liquidity strain to meet short-term obligations.

3. Positive Indicators:

• Recent Acquisition of Fixed Assets: Tangible fixed assets of £747,276 have been added during the last financial year, potentially underpinning future income generation.
• Improved Net Current Assets: Net current assets improved to £173,720 from a negative position previously, suggesting better short-term working capital management.
• No Overdue Filings: Both accounts and confirmation statement are up to date, demonstrating compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the £932,521 long-term liabilities to assess repayment schedules, interest obligations, and covenant risks.
• Review debtor balances of £419,850 for collectability and ageing to evaluate cash flow reliability.
• Confirm the business model and revenue streams supporting asset acquisitions and ongoing operations, given no reported employees.
• Verify if the company has access to additional funding sources or guarantees from the shareholders controlling 25-50% each.
• Assess directors’ plans for returning the company to profitability and strengthening the equity position.