Company Number: 13885957

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   The company exhibits a critical solvency risk due to persistent net current liabilities significantly exceeding current assets, minimal net assets, and a capital structure heavily reliant on long-term creditors. The financial data indicates ongoing liquidity challenges that raise concerns about its ability to meet short-term obligations without additional financing.

2. Key Concerns:

• Negative Working Capital: The company consistently reports net current liabilities of approximately £55,000 to £57,000, indicating that current liabilities surpass current assets substantially, posing immediate liquidity constraints.
• Minimal Net Assets and Equity: Net assets and shareholders' funds remain extremely low (£1,570 in the latest year), suggesting limited financial buffer to absorb losses or financial shocks.
• Heavy Reliance on Long-term Creditors: Creditors falling due after more than one year total around £142,579, which may represent debt obligations that could become problematic if operational cash flows do not improve.

3. Positive Indicators:

• Consistent Fixed Asset Base: The fixed assets remain stable at £199,721 over the three reported years, implying some tangible asset backing.
• Timely Filing and Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices, indicating good regulatory compliance and governance.
• Established Directors and PSCs: The directors are consistent since incorporation, and persons with significant control have been properly notified, reflecting transparency in ownership.

4. Due Diligence Notes:

• Nature and Terms of Long-term Creditors: Investigate the composition and repayment terms of the £142k+ long-term creditors to assess refinancing risks or covenant constraints.
• Cash Flow Statements: Request detailed cash flow analyses to understand operational liquidity and how the company manages working capital deficits.
• Revenue and Profitability Trends: Review the income statements (not provided) to evaluate operating performance and sustainability of the business model in property letting activities.
• Contingent Liabilities or Off-Balance Sheet Items: Clarify any contingent risks that may further impact solvency.
• Directors’ Strategies for Addressing Liquidity: Understand any plans or actions taken by management to improve liquidity and solvency positions.