Company Number: 14329366

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant net current liabilities driven by substantial amounts owed to group undertakings, resulting in negative working capital despite positive net assets.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £791,516 as of 30 September 2024, indicating short-term obligations exceed current assets, which may impair its ability to meet immediate liabilities.
• Large Intercompany Debt: £834,221 is owed to group undertakings within current liabilities, suggesting dependency on related parties for financing, which could be a liquidity risk if support is withdrawn or delayed.
• Limited Operating Activity and Scale: The company employs no staff besides the director and shows no turnover or profit and loss account details, indicating minimal operational activity which may affect sustainability.

3. Positive Indicators:

• Growth in Investment Property Value: The company’s key asset, investment property, increased in fair value from £829,998 to £900,000, reflecting an appreciating asset base.
• Positive Net Assets: Despite short-term liquidity issues, the company maintains positive net assets of £108,486, an improvement from the prior year.
• Compliance with Filing Requirements: The company is active and up to date with all statutory filings, including accounts and confirmation statements, indicating good governance on compliance fronts.

4. Due Diligence Notes:

• Review the nature and terms of the amounts owed to group undertakings to assess repayment schedules, interest terms, and risk of potential calls for immediate repayment.
• Investigate the cash flow projections and financial plans to determine how the company intends to resolve its negative working capital position.
• Confirm the valuation methodology and market conditions for the investment property to ensure the fair value reported is reasonable and realizable.
• Clarify the company’s revenue model and confirm if any rental income or other income streams exist that are not disclosed in the accounts.
• Assess related party transactions for any potential conflicts or risks.