Company Number: 12723992

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a significant turnaround in net assets from negative in previous years to a strong positive position in the latest financial year. However, the presence of substantial long-term liabilities and a relatively high current liability figure compared to current assets warrants caution.

2. Key Concerns:

• High Long-Term Creditors: The company reports £780,333 in creditors due after more than one year, which is a sizeable obligation relative to its current asset base. This could indicate leverage risk or dependence on external financing.
• Liquidity Position: Although net current assets improved to £36,527, current liabilities remain significant (£8,172), and the absolute current asset balance (£38,915) remains low considering the scale of fixed assets, potentially indicating limited liquid resources for short-term obligations.
• Negative Equity History: The company reported negative net assets and shareholder funds in the prior two years (2022 and 2023), indicating past financial distress. While the latest accounts show a recovery, the prior deficits highlight a volatile financial history.

3. Positive Indicators:

• Strong Asset Base: Fixed assets increased substantially from £150,000 in 2023 to £1,960,000 in 2024, reflecting significant investment or asset acquisition that underpins the business’s operational model.
• Shareholders’ Funds Recovery: Shareholders’ funds have improved markedly to £1,200,758 in 2024 from negative values in previous years, which suggests effective recapitalization or profitability improvements.
• On-time Filings: The company is current with its accounts and confirmation statement filings, indicating compliance with statutory requirements and no immediate regulatory concerns.

4. Due Diligence Notes:

• Examine Nature of Long-Term Creditors: Investigate the composition, terms, and covenants attached to the £780,333 long-term creditors to assess refinancing risk and impact on cash flow.
• Review Cash Flow Statements: As cash flow data is not provided here, obtain and analyze detailed cash flow statements to evaluate liquidity trends and operational cash generation.
• Assess Asset Valuation: Confirm the valuation basis of the substantial fixed assets (£1.96M), ensuring they are not overstated and are aligned with market values given their importance on the balance sheet.
• Director and Shareholder Relations: The main director is an accountant, which may be positive for governance; however, further inquiry into the roles and influence of the significant shareholder (Elizabeth Claire Kyriacos, holding 25-50% shares) and related party transactions is advisable.
• Operational Activity: With zero employees and minimal current assets, understanding the company’s business operations, revenue streams, and sustainability is critical, especially given the SIC code relates to letting and operating own real estate.