Company Number: 13163547

Analysis Date: 2025-07-29 18:05 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net assets position and significant current and long-term liabilities exceeding current assets. The rapid deterioration from positive net assets in 2023 to substantial net liabilities in 2024 underscores solvency concerns.

2. Key Concerns:

• Solvency and Capital Deficit: The net assets have dropped from £8,473 in 2023 to a negative £43,762 in 2024, indicating the company’s liabilities exceed its assets by a material amount. This suggests potential difficulty in meeting long-term obligations.
• High Current Liabilities vs. Low Cash: Current liabilities have increased sharply from £182,431 to £564,003 while cash on hand decreased to £4,623. The company’s liquidity position appears precarious, raising concerns about its ability to cover short-term debts.
• Rapid Increase in Long-Term Creditors: Creditors due after more than one year have increased substantially, mirroring the current liabilities trend. This may point to increased borrowing or deferred payments, which could strain cash flows if revenue does not improve.

3. Positive Indicators:

• Active Compliance: The company is up to date with its accounts and confirmation statement filings, reducing regulatory risk.
• Investment Property Asset Growth: Fixed assets, primarily investment property, have increased from £180,000 to £516,350, indicating asset acquisition or revaluation which could support future revenue generation.
• Experienced Management: Directors are resident and active in the UK with no negative conduct records noted, supporting governance stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased liabilities, especially the £564,003 current and long-term creditors, to assess repayment schedules and covenants.
• Review cash flow forecasts and income streams to understand if the increased investment property is generating or expected to generate sufficient rental income or capital appreciation.
• Obtain more detailed financial statements, including profit and loss data, to evaluate operational performance, revenue trends, and expense controls.
• Confirm the reason for the company name change in 2022 and any associated business restructuring that may have impacted financial position.
• Assess potential contingent liabilities or off-balance sheet exposures that may not be reflected in the abridged accounts.