Company Number: 13855814

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity issues, evidenced by net current liabilities of £27,259 and net liabilities of £25,879 as at 31 March 2023. The reliance on amounts owed to group undertakings (£36,368) to meet current liabilities indicates operational cash flow challenges and potential dependency on related-party funding.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s negative shareholders’ funds and net current assets highlight an imbalance between liabilities and assets, signaling insolvency risk.
• High Related-Party Debt: Over £36,000 owed to the parent company suggests reliance on intra-group financing, which may not be sustainable or sufficient under stress.
• No Employees and Minimal Operating Activity: The average headcount is zero, and turnover data is unavailable, raising questions about operational viability and business sustainability.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are filed on time with no overdue returns, demonstrating adherence to regulatory obligations.
• Established Parent Company Control: Ownership by JK Lifting Equipment Limited (75-100%) may provide strategic support or access to resources if needed.
• Low Tangible Fixed Assets: Minimal fixed assets reduce the risk of asset impairment and simplify potential restructuring or sale processes.

4. Due Diligence Notes:

• Assess Cash Flow and Funding Arrangements: Investigate the company’s cash flow forecasts and terms of amounts owed to group undertakings to understand liquidity support and repayment expectations.
• Review Business Model and Revenue Generation: Clarify the company’s operational status, client base, and revenue streams given zero employees and no income statement disclosure.
• Examine Directors’ Plans and Corporate Governance: Understand directors’ strategy to address net liabilities and whether there are plans for capital injection, restructuring, or winding down.
• Evaluate Related-Party Transactions: Scrutinize the nature and terms of related-party debts for potential conflicts or risks to minority stakeholders.