Company Number: 14252954

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities and worsening working capital deficits. The negative shareholders' funds and large creditor balances suggest a high risk of financial distress.

2. Key Concerns:

• Solvency Issues: Net liabilities increased from £2,981 in 2023 to £32,747 in 2024, indicating a deteriorating equity position.
• Liquidity Deficit: Net current liabilities worsened from -£53,311 to -£251,224, showing insufficient short-term assets to cover current liabilities.
• Heavy Long-Term Creditors: Creditors falling due after more than one year ballooned from £124,725 to £460,602, increasing financial leverage and repayment risk.

3. Positive Indicators:

• Growth in Fixed Assets: Fixed assets increased substantially from £175,055 to £679,079, potentially reflecting investment in real estate aligned with its SIC classification.
• No Overdue Filings: Accounts and confirmation statements are filed timely, indicating good compliance with statutory obligations.
• Clear Ownership and Control: A single person with significant control (75-100%) provides clarity on governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the large long-term creditor balances, including repayment schedules and interest obligations.
• Assess the underlying asset valuations and whether the fixed assets are generating or expected to generate sufficient income to support liabilities.
• Review cash flow statements (not provided) to understand operational liquidity and funding sources.
• Consider the strategic plan for moving from negative equity to profitability and solvency.
• Confirm no undisclosed contingent liabilities or regulatory issues given the company’s relatively recent incorporation.