Company Number: 13115028

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets indicating liquidity stress, combined with minimal shareholders’ funds and high levels of debt relative to assets. This raises concerns about its ability to meet short-term obligations and sustain operations without additional funding.

2. Key Concerns:

• Negative Net Current Assets: For four consecutive years, net current assets are negative (e.g., -£37,128 in 2024), signaling potential liquidity challenges and a risk that current liabilities exceed readily available assets.
• High Debt Levels: The company carries significant bank loans (£69,230 total in 2024, combining short- and long-term) against modest fixed assets (£105,114) and very low cash balances (~£1,300), increasing solvency risk.
• Minimal Equity Base: Shareholders’ funds stand at just £1,104 in 2024, down from £2,193 in 2023, reflecting very limited capital buffer to absorb losses or fund growth.

3. Positive Indicators:

• Stable Fixed Assets: Investment property valued consistently at £105,114, which could potentially provide collateral value or income generation capacity.
• No Overdue Filings: The company has up-to-date statutory accounts and confirmation statements, indicating compliance with filing requirements and no immediate regulatory concerns.
• Single Director with Relevant Occupation: The director’s background as an electrician may imply operational involvement and expertise in a trade-related capacity, potentially supporting business continuity.

4. Due Diligence Notes:

• Review the nature and terms of the bank loans and director’s loan account to understand repayment schedules, interest obligations, and any covenants that could trigger default risks.
• Investigate cash flow statements or management accounts (not provided) to assess the company’s operational cash generation and ability to service debts.
• Clarify the income streams from investment properties and whether they produce steady rental income or require significant maintenance/capital expenditure.
• Understand the reasons for ongoing negative working capital and whether this is being managed through supplier terms, additional financing, or other means.
• Confirm if the company is dependent on director loans or external funding to sustain operations given the low liquidity.