Company Number: 13916301

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   Although the company holds significant investment property assets valued at approximately £576k, it reports net liabilities of £24,275 and relies heavily on long-term secured bank loans (£409k) and interest-free loans from group undertakings (£195k). The negative net equity position and dependency on related party funding introduce moderate solvency and liquidity risks. However, there are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Net liabilities position with shareholders’ deficit of £24,275, indicating the company’s liabilities exceed assets.
• Heavy reliance on long-term secured bank loans and sizeable interest-free loans from group companies, which may impact financial flexibility.
• Minimal cash balances (£818) relative to creditors due within one year (£4,460), suggesting tight short-term liquidity.

3. Positive Indicators:

• Investment property assets are stable and valued consistently year-on-year at £575,965 with no impairment indicated.
• No overdue annual accounts or confirmation statements, demonstrating compliance with filing requirements.
• Directors have confirmed ongoing support from associated companies for loan facilities, allowing continued operations under going concern assumptions.
• The company employs 2 people including directors, reflecting a lean operational structure.

4. Due Diligence Notes:

• Review terms and conditions of loans from group undertakings, including repayment expectations and potential impact on cash flows.
• Investigate rental income trends and occupancy rates to assess sustainability of turnover and cash generation.
• Confirm the valuation method and market conditions supporting the investment property fair value, to ensure asset backing remains sound.
• Assess directors’ plans to address the net liabilities position and improve equity, including any capital injections or asset disposals.
• Verify the absence of contingent liabilities or off-balance sheet obligations not disclosed in financial statements.