Company Number: 13990996

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-6,261) as of 31 March 2024, indicating insolvency on a balance sheet basis. The liabilities exceeding assets, especially the significant long-term creditors (£824,322), raise concerns about solvency and financial stability.

2. Key Concerns:

• Solvency Risk: Total liabilities (creditors due after more than one year: £824,322 plus current liabilities and accruals) exceed total assets, resulting in negative shareholder equity. This signals potential inability to meet long-term obligations.
• Liquidity Concerns: Current assets (£521) are negligible compared to current liabilities (£3,460), leading to negative net current assets (-£2,939). This suggests cash flow constraints and operational liquidity pressure.
• Operational Stability: The company has only one employee and minimal current assets, with no indication of recurring revenues or profitability. The large fixed assets may be real estate holdings, but the business model sustainability is unclear given financial stress.

3. Positive Indicators:

• The company is still active and compliant with filing deadlines, indicating governance discipline.
• Ownership is concentrated with a single individual (Mr. Sujith Mahinda Wijekoon) who also acts as director, potentially facilitating decisive management actions.
• Fixed assets worth £822,050 may represent tangible real estate investments that could provide collateral value or cash realization opportunities.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£824,322). Are these loans, mortgages, or other obligations? What are their repayment schedules and covenants?
• Clarify the valuation and liquidity of fixed assets. Are these investment properties, and what is their market value and potential for sale or refinancing?
• Review cash flow forecasts and business plans to assess how the company intends to meet current liabilities and improve solvency.
• Confirm no director disqualifications or regulatory issues affecting company governance.
• Examine any related party transactions or guarantees given by the sole shareholder/director.