Company Number: 12741959

Analysis Date: 2025-07-29 17:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity issues, evidenced by large negative net current assets and substantial directors’ loan accounts forming a major part of current liabilities. The thin equity base relative to liabilities also heightens solvency risk.

2. Key Concerns:

• Liquidity Risk: Negative net current assets of approximately £158,817 as of July 2024 indicate the company may struggle to meet short-term obligations without additional cash inflows or refinancing.
• Reliance on Directors’ Loans: Directors’ loan accounts total £165,038 within current liabilities, suggesting dependency on insider funding which may not be sustainable or formalized with external creditors.
• Thin Equity Base: Shareholders’ funds stand at only £9,613, a marginal improvement from previous years but still very low relative to total liabilities, increasing the risk of insolvency if asset values decline or losses occur.

3. Positive Indicators:

• Asset Growth: Fixed assets increased from £248,480 in 2023 to £297,112 in 2024, indicating ongoing investment in property assets aligned with its SIC codes related to real estate.
• Compliance: The company is active, filing accounts and confirmation statements on time with no overdue filings, which indicates regulatory compliance and management attention to governance.
• Directors’ Stability: The two directors have been in place since incorporation without indications of disqualifications or governance issues in the data provided.

4. Due Diligence Notes:

• Assess the nature and terms of the directors’ loan accounts, including repayment expectations and any formal agreements.
• Investigate cash flow projections and revenue streams to evaluate the company’s ability to improve its working capital position.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Confirm property valuations and the recoverability of fixed assets, given the reliance on real estate holdings.
• Understand the business model’s sustainability including tenant stability or sales pipeline given the SIC codes for property letting and sales.