Company Number: 13161437

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets (shareholders’ funds) and a significant level of long-term liabilities exceeding total assets. Despite holding fixed assets valued at £448,000, the net asset position is negative (£-19,641 for FY 2024), indicating solvency concerns. The current liabilities are substantial relative to current assets, suggesting liquidity pressure.

2. Key Concerns:

• Negative Net Assets: Persistent negative equity over multiple years signals financial distress and potential insolvency risk.
• High Long-Term Creditors: Creditors due after more than one year amount to £337,950, exceeding total assets, which may indicate difficulty in meeting debt obligations.
• No Employees or Revenue Data: The absence of employees and lack of income statement data limits assessment of operational viability, raising concerns about sustainable business activity.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance in statutory reporting.
• Fixed Asset Base: The company holds substantial fixed assets (£448,000), presumably real estate given the SIC code, which could be leveraged or sold to alleviate financial pressures.
• Stable Director Presence: A single director has maintained consistent involvement since incorporation, potentially reflecting stable management.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, including any security interests or covenants attached to these liabilities.
• Clarify revenue generation, cash flow status, and operational activities since no income statement or turnover data is available.
• Verify the valuation and marketability of the fixed assets to assess realistic recoverable value in case of financial distress.
• Examine any related party transactions or contingent liabilities not disclosed in micro-entity abridged accounts.
• Review director’s intentions and business plan regarding resolving negative equity and debt servicing.