Company Number: 13010056

Analysis Date: 2025-07-20 16:06 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities with negative shareholders’ funds and significant current liabilities exceeding current assets by a wide margin, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has been reporting net liabilities for multiple years, with shareholders' funds negative at £-4,084 as of 2023, suggesting erosion of equity and potential insolvency.
• Significant Current Liabilities vs. Minimal Current Assets: Current liabilities stand at about £460k while current assets are only around £7k, resulting in negative net current assets of approximately £186k, a strong liquidity concern.
• Long-Term Debt Burden: There is a substantial creditor balance falling due after more than one year (£459,965), indicating a high leverage that may pressure cash flows and operational sustainability.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain steady at £642,438 over the years, indicating the company owns or controls significant long-term assets.
• Current with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, showing regulatory compliance and governance discipline.
• Single Director with Significant Control: Clear ownership and control may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the £459,965 creditors falling due after more than one year to understand repayment obligations and potential refinancing risks.
• Review cash flow statements (not provided) to assess operational cash generation capacity and the ability to service current liabilities.
• Examine whether the fixed assets are income-generating (e.g., investment property) and their market valuations versus book values to assess real asset backing.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations that could exacerbate solvency risks.
• Understand the business model's revenue streams and profitability trends, which are not disclosed here.