Company Number: 12946047

Analysis Date: 2025-07-20 14:21 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to net liabilities and negative shareholders' funds. Its current liabilities vastly exceed current assets, indicating liquidity shortages that could impede meeting short-term obligations.

2. Key Concerns:

   • Negative Net Current Assets: The company has net current liabilities of £333,132 against cash holdings of only £4,522, signaling potential cash flow distress.
   • Negative Equity Position: Shareholders’ funds stand at -£2,732, reflecting accumulated losses or funding deficiencies that undermine financial stability.
   • Director Loans as Sole Liability: The entire current liability balance (£337,654) is owed to directors, suggesting dependence on director financing which may not be sustainable or readily available if circumstances change.

3. Positive Indicators:

   • Investment Property Asset: The company holds investment property valued at £330,400, a material fixed asset that may provide collateral value or income generation potential.
   • Compliance with Filing Requirements: No overdue accounts or confirmation statements are noted, indicating regulatory compliance and up-to-date company records.
   • Stable Directorship: The single director, appointed at inception, remains in place without any disclosed disqualifications or governance issues.

4. Due Diligence Notes:

   • Examine Director Loan Terms: Investigate the nature, repayment terms, and any formal agreements related to the £337,654 loan from directors to assess risk of sudden withdrawal or calls for repayment.
   • Cash Flow Projections: Request management’s short-term cash flow forecasts to evaluate the company’s ability to meet ongoing liabilities and operational expenses.
   • Valuation and Liquidity of Investment Property: Verify the market value, condition, and liquidity of the investment property to assess its potential to support solvency needs if liquidation is required.
   • Profit and Loss Account History: Since the profit and loss account has not been filed, obtain detailed profit and loss statements to understand the company’s operational performance and reasons behind accumulated losses.
   • Employees and Operational Activities: Confirm the nature of business operations, employee roles (noted as 3 employees), and revenue streams to assess operational sustainability.