Company Number: 14527558

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   Justification: The company shows a persistent and significant net current liability position (circa £165k negative working capital), indicating liquidity strain. Despite holding fixed assets valued at approximately £166k, current liabilities exceed current assets by a large margin, revealing potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Liquidity Risk: Cash balances are minimal (£5,145 as of 2024 year-end) compared to current liabilities (£170,154), posing immediate cash flow concerns.
• Solvency Risk: Shareholders’ funds have improved slightly to positive £981 but remain effectively negligible; the company only recently moved from negative equity, suggesting fragile solvency.
• Operational Stability: The company has only been operating since December 2022, with limited financial history and no indication of positive cash flow generation or turnover data disclosed, raising questions on sustainability.

3. Positive Indicators:

• Asset Base: The company owns investment property assets valued consistently at £165,990, which could provide collateral or future income streams.
• Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating sound regulatory compliance.
• Experienced Directors: Directors have clear professional backgrounds and no negative conduct records are noted.

4. Due Diligence Notes:

• Request detailed turnover, profit and loss data, and cash flow statements to assess operational performance and cash generation capabilities.
• Verify the nature and terms of current liabilities, especially bank loans and other creditors, to understand repayment schedules and covenants.
• Assess the valuation and liquidity of the investment property assets, including any encumbrances or restrictions.
• Investigate any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Confirm the business plan and funding arrangements given the early stage of the company and current financial position.