Company Number: 14065638

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: MEDIUM

Justification: The company shows positive net assets but has recurring significant net current liabilities, indicating liquidity stress. It is a micro-entity with limited operational scale and no employees, which also constrains operational resilience. However, it is current with filings and not in any insolvency process.

2. Key Concerns:

• Liquidity Risk: Net current liabilities of approximately £170k (2025) and £187k (2024) suggest working capital deficiencies and potential cash flow challenges.
• High Long-Term Creditors: Creditors due after one year remain high and unchanged (£344k), which may indicate substantial debt obligations impacting solvency.
• Operational Scale: No employees and small asset base imply limited operational capacity and potential dependence on external management or related parties.

3. Positive Indicators:

• Positive Net Assets: Despite liabilities, net asset position improved from £2,996 (2024) to £20,755 (2025), indicating some equity growth.
• Compliance: No overdue filings for accounts or confirmation statements, showing good regulatory compliance.
• Sole Control: A single director and 75-100% shareholder provides clear governance and control, reducing complexity in decision-making.

4. Due Diligence Notes:

• Review nature and repayment terms of the £344k long-term creditors to assess debt servicing risk.
• Investigate cash flow statements or bank balances (not provided) to confirm liquidity position.
• Understand the business model given no employees—determine if operations are outsourced or passive real estate holdings.
• Confirm whether any related party transactions exist given sole ownership and director status.
• Assess future plans or funding sources to mitigate negative working capital and support growth or debt reduction.