Company Number: 15077640

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

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net liabilities of £2,538 and negative shareholders’ funds of £32,538 shortly after incorporation. The negative net current assets position (-£57,514) indicates liquidity challenges, as current liabilities exceed current assets substantially.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s equity is negative, suggesting accumulated losses or undercapitalisation from the outset.
• Liquidity Deficit: Current liabilities (£88,786) far exceed current assets (£31,272), with only £992 in cash, indicating potential short-term cash flow issues.
• High Long-Term Debt: Bank loans of £91,431 due after one year add to financial obligations, increasing leverage and risk if earnings or cash flows are insufficient.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £146,407 at fair value, which is a tangible asset potentially generating income or realizable value.
• Compliance with Filing Requirements: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions.
• Single Owner with Full Control: The sole shareholder and director, Mr. Johnson Antwi, maintains 75-100% ownership and control, which may enable swift decision-making.

4. Due Diligence Notes:

• Review the origin of the negative equity and understand the nature of the £32,538 loss reserve. Determine if this relates to start-up costs, valuation adjustments, or other factors.
• Assess the income-generating potential and occupancy status of the investment property to evaluate operational sustainability and cash flow prospects.
• Clarify the terms and repayment schedule of the bank loan (£91,431) and other creditors, including nature and security of these borrowings.
• Investigate debtors (£30,280) aging and collectability to assess whether these will convert to cash in a timely manner.
• Confirm whether the company has any trading history beyond the initial accounting period or if it is still in a start-up phase.