Company Number: 13860511

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity risks, evidenced by consistent negative net assets and substantial current liabilities exceeding current assets by a large margin. These financial indicators point to potential difficulties in meeting short-term obligations without additional capital or refinancing.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of approximately £14,847 as at 31 January 2024, indicating the company’s liabilities exceed its assets.
• Severe Working Capital Deficit: Current liabilities (£345,166) far exceed current assets (£804), resulting in net current liabilities of £344,362, which suggests a critical liquidity shortfall.
• Reliance on Director Loans: The company owes £15,300 to directors, interest-free and repayable on demand, indicating dependence on related-party financing to support operations.

3. Positive Indicators:

• Growing Fixed Assets: Fixed assets increased notably from £251,773 in 2023 to £503,715 in 2024, which may indicate investment in property assets consistent with its SIC code (real estate letting).
• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, suggesting regulatory compliance and governance discipline.
• Experienced Management: The three directors have been in post since incorporation, which may provide operational stability and continuity.

4. Due Diligence Notes:

• Review Debt Structure: Investigate the composition and terms of the £345k current liabilities and £174k long-term creditors to assess refinancing risk and creditor relations.
• Cash Flow Analysis: Obtain detailed cash flow statements to evaluate ongoing liquidity management and the company’s ability to service debt.
• Asset Valuation: Confirm the valuation method and marketability of fixed assets (£503k), as these underpin creditors’ security.
• Director Loans: Clarify the nature and future plans regarding director loan repayment to understand potential cash inflows or further dependency.
• Profitability and Revenue Trends: As no profit and loss data is provided, request detailed P&L accounts to assess operational sustainability and profitability trajectory.