Company Number: 12518091

Analysis Date: 2025-07-20 13:31 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity stress with net current liabilities exceeding £140,000 annually despite minimal current assets, indicating an inability to cover short-term obligations from liquid resources. The fixed asset valuation (investment property) remains stable but the large current liabilities and negative working capital pose serious solvency concerns.

2. Key Concerns:

• Persistent and substantial negative net current assets (~£142k to £152k) over multiple years, reflecting ongoing liquidity shortfalls and potential cash flow difficulties.
• Current liabilities (~£148k in 2023) vastly exceed current assets (~£5.8k in 2023), which may lead to difficulties meeting short-term creditor demands.
• No employees reported and very low share capital (£200), suggesting limited operational activity and thin capitalization, which may impact business sustainability and ability to absorb financial shocks.

3. Positive Indicators:

• The company owns investment property valued consistently at £159,442, providing a tangible asset base and potential collateral.
• Directors appear to have stable and relevant backgrounds in property lettings and development, aligned with the company’s real estate activities.
• The company is up-to-date with statutory filing requirements (accounts and confirmation statements), indicating compliance with regulatory obligations.

4. Due Diligence Notes:

• Investigate the nature and terms of the high current liabilities: creditor identities, maturity profiles, and whether these are secured or unsecured.
• Review cash flow statements and operational income to understand sources of liquidity and any reliance on shareholder loans or external financing.
• Assess valuation and marketability of the investment property asset and any encumbrances or liens attached to it.
• Clarify the company’s business model viability given the absence of employees and minimal operational disclosures.
• Confirm the absence of director or governance issues; no disqualifications or compliance red flags were identified from available data.