Company Number: 13132797

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: MEDIUM
   The company shows a stable asset base and ongoing operations but exhibits significant net current liabilities and thin capitalisation, which may constrain its short-term financial flexibility.

2. Key Concerns:

• Negative Net Current Assets: The company consistently reports net current liabilities exceeding £145k, indicating potential liquidity pressures to meet short-term obligations.
• Significant Long-Term Creditors: Creditors due after more than one year stand at approximately £129k, which represents a material long-term liability relative to shareholders’ funds.
• Low Share Capital and Equity Base: With a nominal share capital of £2 and shareholders’ funds around £32k, the company's equity buffer is limited, raising concerns about resilience against financial shocks.

3. Positive Indicators:

• Consistent Fixed Asset Base: Fixed assets remain steady at £307k over the years, indicating ownership of tangible or investment property assets that underpin the business.
• Timely Filing and Compliance: The company is up-to-date with both accounts and confirmation statement filings, reflecting good regulatory compliance and governance.
• Stable Directorship: Both directors have been in place since incorporation with no adverse records disclosed, suggesting stable management.

4. Due Diligence Notes:

• Examine Nature and Terms of Creditors: Further details on the composition of current and long-term creditors are needed to assess repayment terms and refinancing risks.
• Cash Flow Analysis: Investigate recent cash flow statements to evaluate operational liquidity and the company’s ability to cover short-term liabilities.
• Asset Valuation and Market Position: Confirm the valuation basis of fixed assets (likely property) and assess market conditions affecting rental income or asset disposals.
• Directors’ Strategies: Review management commentary or strategic plans to understand how the company intends to improve liquidity and strengthen equity.