Company Number: 14371327

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks due to minimal net assets and substantial long-term liabilities owed to group undertakings, offset only by an investment asset that appears illiquid. The limited current assets and high creditor balances raise liquidity concerns.

2. Key Concerns:

• Solvency and Capital Structure: Net assets stand at merely £100, with total liabilities after one year totaling approximately £218k, primarily amounts owed to group companies. This indicates high leverage and potentially thin equity capital.
• Liquidity Risk: Current liabilities (£33k) greatly exceed current assets (£100), resulting in net current liabilities of approximately £33k, suggesting the company may face difficulties meeting short-term obligations.
• Lack of Profit & Loss Data: The absence of filed profit and loss accounts limits assessment of operational performance and cash flow generation, hindering a clear view of ongoing business sustainability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance in statutory reporting.
• Stable Ownership and Management: The two directors who jointly control the company have been in place since inception with no disqualifications or governance issues noted.
• Investment Asset: The fixed asset investment of £250,875 may represent ownership in subsidiaries or related entities, potentially providing future value or operational backing.

4. Due Diligence Notes:

• Clarify the nature and recoverability of the fixed asset investment of £250,875, including the financial health of the subsidiary or invested entities.
• Obtain and review profit and loss accounts or management accounts to assess operational cash flows and profitability.
• Investigate the terms, interest rates, and repayment schedules of the long-term creditors owed to group undertakings to evaluate refinancing or repayment risks.
• Confirm whether the company has access to external financing or guarantees to cover current liabilities given the low liquidity position.