Company Number: 13909871

Analysis Date: 2025-07-20 13:57 UTC

1. Risk Rating: HIGH
   The company exhibits a critical liquidity risk with current liabilities vastly exceeding current assets, resulting in negative net working capital. The minimal net equity and reliance on long-term loans exacerbate solvency concerns.

2. Key Concerns:

• Liquidity Shortfall: Current assets of £16,482 versus current liabilities of £174,489 create a negative net current asset position of -£158,007, indicating potential short-term cash flow difficulties.
• High Leverage: Long-term bank loans of £340,002 compared to net assets of only £191 suggest significant financial gearing with limited equity buffer.
• Lack of Operational Activity: No employees and no turnover disclosures indicate the company may not be generating operational cash flow, increasing dependence on financing or asset disposals.

3. Positive Indicators:

• Investment Property Asset Base: Fixed assets consist entirely of investment property valued at £498,200, which may provide collateral value or potential for income generation.
• Compliance with Filings: Accounts and confirmation statements are up to date and not overdue, indicating regulatory compliance and governance diligence.
• Stable Ownership and Management: Single director and 100% shareholder control by Mr. Joseph Stern, potentially enabling swift decision-making.

4. Due Diligence Notes:

• Investigate the terms and repayment schedules of the £340,002 bank loan to assess refinancing or default risks.
• Review any rental income or other cash inflows from the investment property to evaluate operational viability.
• Verify if there are plans or commitments for capital injections or asset sales to improve liquidity.
• Assess the company’s business model and revenue generation strategies, as no turnover or employees are reported.
• Confirm absence of director disqualifications or governance issues given sole director control.