Company Number: 14682996

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets and shareholder funds, coupled with very low current assets relative to current liabilities. The large long-term liabilities further exacerbate solvency concerns, indicating a high risk that the company may struggle to meet its financial obligations.

2. Key Concerns:

• Negative Net Assets and Shareholder Funds: Net assets stand at approximately -£71,125, indicating the company is insolvent on a balance sheet basis.
• Poor Liquidity Position: Current assets of only £3 against current liabilities of £802 suggest immediate liquidity constraints and potential cash flow difficulties.
• Significant Long-Term Debt: Creditors due after more than one year total £364,410, mainly consisting of intercompany loans and other creditors, adding financial strain and uncertainty about repayment capacity.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds fixed assets valued at £294,084, primarily land and property, which could provide security for creditors or potential liquidation value.
• Current Compliance: The company has filed its accounts and confirmation statements on time with no overdue filings or regulatory issues noted.
• Experienced Director with Relevant Industry Background: The sole director has an architecture occupation, aligning with the company's SIC code (development of building projects), suggesting operational knowledge.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, particularly the £351,810 other creditors and intercompany loans, including repayment schedules and any security held.
• Review cash flow forecasts and business plans to assess how the company intends to address its negative working capital and insolvency.
• Examine the origin of the negative retained earnings and whether these losses are expected to continue or represent initial startup costs given the recent incorporation date (2023).
• Verify any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess any related-party transactions, given the intercompany loan, to understand financial dependencies and risks.