Company Number: 13514359

Analysis Date: 2025-07-20 13:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks as evidenced by negative net assets and shareholders’ funds as of the latest financial year end (July 2024). The large increase in current liabilities relative to current assets signals liquidity stress. The company also carries substantial long-term bank loans, heightening financial leverage and repayment obligations.

2. Key Concerns:

• Negative Shareholders' Funds and Net Assets: The company’s net liabilities of £55,955 and negative shareholders’ funds of £103,066 in 2024 indicate erosion of equity and potential distress.
• Severe Working Capital Deficit: Net current liabilities have widened from approximately £136k in 2023 to £282k in 2024, suggesting worsening short-term liquidity and possible cash flow constraints.
• High Financial Leverage: Long-term bank loans increased sharply from £519,135 in 2023 to £870,005 in 2024, more than doubling debt exposure within one year, which may strain operational cash flows and increase default risk.

3. Positive Indicators:

• Growth in Investment Property Assets: Fixed assets, primarily investment properties, have increased significantly from £677k in 2023 to £1.11M in 2024 indicating asset base growth and potential for future income generation.
• No Overdue Filings or Compliance Issues: The company is active and up to date with both accounts and confirmation statement filings, reflecting good regulatory compliance.
• Stable Management and Ownership: Directors and PSCs have been consistent since incorporation, with clear control structure and no public record of director disqualifications.

4. Due Diligence Notes:

• Investigate the terms, covenants, and repayment schedule of the long-term bank loans to assess refinancing risk and potential breaches.
• Review cash flow forecasts and operational plans to understand how the company intends to manage negative working capital and return to profitability.
• Examine the valuation basis and liquidity of investment properties, including market conditions and rental income stability, to validate asset quality.
• Assess whether the negative equity position has triggered any lender or shareholder actions or restrictions on distributions.