Company Number: 14151746

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets (£ -1,549 as at 30 June 2024) and significant long-term liabilities exceeding current assets. The balance sheet shows creditors falling due after one year at £1,128,270, which surpasses total current assets of £1,126,721, indicating potential solvency issues. Additionally, the absence of fixed assets as of 2024 and the complete disposal of investment properties raise concerns regarding asset base and operational sustainability.

2. Key Concerns:

• Negative Shareholders' Funds: The company's equity is negative, demonstrating accumulated losses or an erosion of capital, which can impair its ability to absorb future losses.
• High Long-Term Creditors Relative to Assets: Creditors due after more than one year exceed current assets, suggesting a potential mismatch in asset-liability duration and risk of cash flow strain.
• Lack of Operational Activity: Zero employees and disposal of tangible fixed assets (investment properties) imply limited or no active operations, questioning business sustainability and revenue generation capability.

3. Positive Indicators:

• Up-to-Date Compliance: No overdue filings for accounts or confirmation statements indicate adherence to statutory filing requirements and good regulatory compliance.
• Director Stability: Single director appointed since incorporation with no disqualifications or governance issues noted, suggesting stable leadership.
• Large Debtor Balances: Significant debtor amounts (£1,103,555) might indicate ongoing business transactions or receivables, which if collectible, could support liquidity.

4. Due Diligence Notes:

• Investigate Nature and Collectability of Debtors: Confirm if debtor balances are recoverable or impaired, as large outstanding receivables can distort liquidity perceptions.
• Clarify Terms and Security of Long-Term Creditors: Understand creditor profiles, repayment schedules, and any covenants or security interests that may impact solvency.
• Assess Reason for Disposal of Fixed Assets: Determine why investment properties were disposed and whether the company intends to reinvest or has ceased operations in real estate trading.
• Review Profit and Loss Statements: Since income statements were not filed, request detailed profit and loss information to evaluate operational performance and cash flow generation.