Company Number: 13527288

Analysis Date: 2025-07-29 19:21 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant net current liabilities, indicating solvency and liquidity risks. The large imbalance between current liabilities and current assets, coupled with persistent losses, raises concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: At 31 December 2023, net assets are negative (£-28,830), reflecting accumulated losses and eroded equity, a red flag for solvency.
• Severe Working Capital Deficit: Net current liabilities stand at £381,801, with current liabilities exceeding current assets by a wide margin, indicating liquidity stress.
• Lack of Employees and Revenue Details: The company reports zero employees in 2023 and minimal cash (£2,476), with no disclosed revenue or profit and loss accounts, limiting visibility on operational sustainability.

3. Positive Indicators:

• Investment in Subsidiaries: Fixed asset investments increased slightly from £707,393 to £735,153, suggesting ongoing investment or capital value in group undertakings.
• No Filing or Compliance Issues: All statutory filings (accounts and confirmation statements) are up to date and not overdue, indicating sound regulatory compliance.
• Experienced Directors and Clear Ownership: The company has two directors with significant shareholding and voting control, which may indicate stable governance at the ownership level.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the fixed asset investments in subsidiaries, as these represent the bulk of reported assets.
• Review underlying cash flow forecasts and financing arrangements that support the ability to meet large current and long-term liabilities.
• Obtain detailed profit and loss information and understand business operations given the absence of employees and limited current assets.
• Clarify the source and terms of the significant creditor balances, particularly the bank loans and other creditors, to assess refinancing risk and covenant compliance.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.