Company Number: 13976191

Analysis Date: 2025-07-20 17:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets and shareholders’ funds. The balance sheet shows liabilities exceeding current assets by over £1.1 million consistently across the reporting periods, indicating an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Working Capital: The net current liabilities of approximately £1.1 million suggest ongoing liquidity strain, risking cash flow disruptions.
• Negative Shareholders’ Funds: Persistent negative equity (around £1,980) signals accumulated losses or undercapitalization, threatening the company’s financial stability.
• Dependence on Group Funding: Over half of the current liabilities (£655,500) are amounts owed to group undertakings, implying reliance on related-party funding rather than external revenue or financing.

3. Positive Indicators:

• Active Status with Timely Filings: The company is active and compliant with both accounts and confirmation statement filings, reducing regulatory compliance concerns.
• Single Director with Full Control: Mr. Kevin Patrick McCarthy holds 75-100% of shares and voting rights and is the sole director, which can simplify decision-making and governance.
• Substantial Investment in Subsidiary: The company holds fixed asset investments valued at £1.1 million, which may represent underlying value or operational assets.

4. Due Diligence Notes:

• Investigate the nature and terms of the amounts owed to group undertakings to assess the sustainability and security of this funding.
• Review the company’s business model and revenue generation capability in the conference organizing sector to understand operational viability and future cash flows.
• Clarify the reasons behind persistent negative retained earnings and whether any plans exist to restore profitability or inject additional capital.
• Confirm whether the investment in subsidiaries is recoverable and if these assets can be leveraged to improve liquidity.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in the filings.