Company Number: 13634898

Analysis Date: 2025-07-29 14:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by negative net assets (£-32,686) and a substantial net current liability position (£-67,836). The balance sheet shows a heavy reliance on creditor financing, including a sizeable secured bank loan, which raises concerns about the ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s equity is in deficit, indicating accumulated losses or an over-leveraged position.
• Large Current and Long-Term Liabilities: Current liabilities (£105,381) and long-term creditors (£101,400) exceed current assets by a wide margin, highlighting liquidity stress.
• Lack of Operating Data and Profit & Loss Information: The absence of an income statement and turnover data limits assessment of operational performance and sustainability.

3. Positive Indicators:

• Fixed Assets Base: The company holds tangible fixed assets valued at £136,550, which serve as collateral for the bank mortgage and provide some balance sheet support.
• No Overdue Filings: Accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements and governance discipline.
• Established Control: Two identified persons with significant control have clear ownership and management roles, which supports transparency.

4. Due Diligence Notes:

• Investigate Cash Flow and Operating Performance: Obtain or request management accounts or P&L data to understand revenue generation, profitability, and cash flow dynamics.
• Review Debt Terms and Repayment Schedule: Confirm conditions of the bank mortgage and creditor arrangements to assess repayment risk and potential covenant breaches.
• Assess Property Valuation and Market Conditions: Verify the valuation of the tangible fixed asset (property) and its liquidity in the current market environment.
• Examine Director and Related Party Transactions: Evaluate any transactions with controlling parties or related entities that may impact financial stability.