Company Number: 12744144

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   The company holds significant investment property assets and shows positive net current assets; however, the equity base is very low relative to its liabilities, indicating leveraged financial structure. The presence of substantial long-term debt and modest retained earnings suggests some solvency risk despite current positive working capital.

2. Key Concerns:

• High Long-Term Debt: The company has secured mortgages and other loans totaling over £1.15 million, which is substantial relative to net assets (£14,200), indicating potential leverage and refinancing risk.
• Low Net Equity: Shareholders' funds remain minimal (£14,200), reflecting limited buffer against asset value fluctuations or operational losses.
• Concentration of Debtors: Large debtor balance (£653,800) mainly from group undertakings may affect liquidity if not collectible on time or if intercompany arrangements change.

3. Positive Indicators:

• Strong Net Current Assets: The company has a positive net current asset position (£665,641) indicating adequate short-term liquidity to cover current liabilities.
• Stable Investment Property Valuation: The investment property asset is valued consistently at £533,300, providing a tangible asset base.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and good governance.

4. Due Diligence Notes:

• Verify the collectability and terms of the large debtor balances, especially amounts owed by group undertakings.
• Review loan agreements, repayment schedules, and director personal guarantees to assess refinancing or default risk.
• Assess underlying cash flow generation from property lettings or sales to ensure operational sustainability.
• Confirm the valuation methodology and frequency for the investment property given its significant impact on balance sheet strength.
• Investigate any contingent liabilities or off-balance sheet exposures not reflected in the accounts.