Company Number: 14062573

Analysis Date: 2025-07-19 12:12 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk due to substantial current liabilities (£254,938) vastly exceeding current assets (£2,443) as of the last financial year end (March 2024), resulting in net current liabilities of approximately £252,495. Shareholders’ funds are negative at £98, indicating an erosion of equity capital. The large loan from a related party, repayable on demand and not interest-bearing, further underlines reliance on external funding with unclear repayment capacity.

2. Key Concerns:

• Severe Liquidity Deficit: Current liabilities outweigh current assets by a large margin, pointing to potential cash flow problems and difficulty meeting short-term obligations.
• Negative Net Assets: The company’s net liabilities position is concerning for long-term solvency and financial stability.
• Related Party Loans: A substantial, interest-free loan from a related entity (£254,000) which is repayable on demand raises questions about the sustainability of financing and the company’s independence.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at £252,397, which may provide some asset backing and potential for future revenue through rentals or capital appreciation.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Experienced Directors: Both directors have maintained continuous directorship since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party loan, including any agreements governing repayment and the financial position of the lending entity.
• Assess the cash flow forecast and business plan to understand how the company intends to manage and reduce current liabilities and improve liquidity.
• Review any underlying valuations or third-party confirmations of the investment property to verify asset realizable value in a stressed scenario.
• Examine any contingent liabilities or off-balance sheet obligations that may exacerbate financial stress.
• Understand the company’s revenue model and current operational status since no employees were reported and no profit and loss account was included.