Company Number: OC439351

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity strain as evidenced by consistently negative net current assets (£-84,047 in 2024, improving from £-126,556 in 2023), with current liabilities substantially exceeding current assets. This shortfall suggests difficulty in meeting short-term obligations without additional financing or asset liquidation.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities (£126,551) far exceed its current assets (£42,504), indicating potential cash flow problems. Cash on hand is low (£10,807), limiting immediate payment capability.
• Reliance on Member Loans: Total members’ loans increased from £150,574 to £190,313, indicating dependence on internal financing to support operations and balance sheet strength. This could pose risks if members withdraw support.
• Limited Financial Transparency: As a small LLP, accounts are unaudited and exclude an income statement, restricting insight into profitability and operational cash flows, making risk assessment less certain.

3. Positive Indicators:

• Tangible Fixed Assets Base: The LLP holds significant tangible assets (£274,360 net book value), which may provide security or collateral for borrowing or sale to improve liquidity.
• Current Filing Compliance: The company is up to date with statutory filings (accounts and confirmation statements), indicating good regulatory compliance and governance.
• Stable Membership and Control: The designated members and PSC have been consistent since incorporation, suggesting stable governance and control.

4. Due Diligence Notes:

• Review detailed cash flow statements and underlying reasons for persistent working capital deficits.
• Investigate the terms, security, and sustainability of loans from members, including any repayment obligations or covenants.
• Assess the realizable value and marketability of tangible fixed assets and their role in the business operations.
• Seek information on revenue streams, profitability, and future business plans given the lack of an income statement.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not disclosed.
• Evaluate the business model (likely hospitality/retreat given website info) for operational risks and market conditions.