Company Number: 14456651

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities of approximately £2.85 million, with current liabilities (£5.2 million) substantially exceeding current assets (£2.34 million). Shareholders’ funds are negative (£22,146), indicating an erosion of equity. These financial indicators suggest solvency and liquidity risks.

2. Key Concerns:

• Liquidity Deficit: Cash and current assets are insufficient to cover short-term liabilities, posing a risk to meeting immediate obligations.
• Negative Equity Position: Shareholders’ funds are negative, reflecting accumulated losses or undercapitalization, which may impede the company’s ability to raise finance or absorb shocks.
• High Short-Term Creditors: The large amount owed to other creditors (£5.16 million) within one year could lead to creditor pressure or enforcement actions if unpaid.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds substantial fixed assets (£2.83 million), primarily land and buildings, which may provide collateral for financing or eventual liquidity upon sale.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance in this respect.
• Experienced Directors: The directors have been in place since incorporation, suggesting stability in management.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial current liabilities, especially the “other creditors” category, to assess repayment schedules and potential restructuring.
• Clarify the source and valuation of fixed assets to confirm realizable value and whether encumbrances exist.
• Review cash flow projections and funding plans to determine the company’s ability to improve liquidity and return to positive working capital.
• Confirm that no director disqualifications or regulatory issues exist beyond the data provided.
• Assess the business model viability, considering the company is newly incorporated (since November 2022) and operates in buying and selling own real estate, which may be capital intensive and cyclical.