Company Number: 13130395

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency risks. Negative net current assets worsening from -£73,554 to -£158,289 and net liabilities close to zero but negative (£-205) indicate financial distress. The current liabilities (£244,483) far exceed current assets (£86,194), suggesting an inability to cover short-term obligations from liquid resources.

2. Key Concerns:

• Negative Working Capital and Net Liabilities: The company’s current liabilities substantially exceed its current assets, with a worsening net current liability position indicating liquidity pressure and inability to meet short-term debts.
• Reliance on Related Party Funding: The majority of creditors are amounts owed to group undertakings (£242,143), which may indicate dependence on intra-group financing with associated risks if support is withdrawn.
• Lack of Independent Valuation for Investment Property: Investment property (£158,084) is stated at cost without independent valuation or impairment review, raising concerns about asset realizable value and overstatement of fixed assets.

3. Positive Indicators:

• Active Company Status with Compliance: The company is active, has filed accounts and confirmation statements on time, indicating regulatory compliance and governance discipline at filing level.
• Growing Investment Property Asset: The increase in investment property from £72,685 to £158,084 suggests some business activity or asset acquisition, which could provide future value/liquidity.
• No Staff Overhead: Zero employees reduce operational cash burn, limiting immediate operational risk.

4. Due Diligence Notes:

• Verify the nature and terms of related party balances, particularly amounts owed to group undertakings and director loans, to assess the risk of withdrawal or demands for repayment.
• Obtain independent valuation or third-party confirmation of investment property value to confirm balance sheet accuracy and asset quality.
• Investigate cash flow statements and management plans addressing the substantial net current liability to understand how the company intends to meet obligations and operate going forward.
• Review director’s strategy and any contingent liabilities or off-balance sheet commitments that may affect solvency.