Company Number: 13803612

Analysis Date: 2025-07-29 16:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with current liabilities far exceeding current assets, resulting in a negative working capital position. Despite substantial fixed assets (investments), the lack of liquid assets to cover short-term obligations raises solvency and cash flow risks.

2. Key Concerns:

• Negative Net Current Assets: Current assets of £1 versus current liabilities of over £113,000 indicate an inability to meet short-term debts from liquid resources.
• Concentration in Illiquid Investments: Fixed assets are entirely investments valued at £360,003 with no indication of marketability or income generation, limiting operational cash flow.
• Unusual PSC Ownership Reporting: There is conflicting information on share ownership/control among PSCs, with one individual reported holding 75-100% ownership yet two others hold 25-50%, indicating potential inaccuracies or complexities in control structure.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is active and up to date with both accounts and confirmation statement filings, showing regulatory compliance.
• Stable Net Asset Position: Net assets are consistent year-on-year (~£247k), indicating no material erosion of equity value despite liquidity issues.
• Small Company Reporting Exemption: The company qualifies for small company reporting, simplifying disclosures and audit requirements.

4. Due Diligence Notes:

• Investigate the nature and marketability of the fixed asset investments to assess realizable value and potential to generate cash flow.
• Clarify the actual shareholding percentages and voting rights among PSCs to understand control and governance dynamics.
• Review creditor details to understand the nature and terms of the £113k current liabilities, including any overdue or disputed balances.
• Assess operational business activities and revenue streams given the SIC code for holding company activities and minimal current assets.
• Confirm rationale for lack of cash or equivalents and any plans to address liquidity shortfall.