Company Number: 13120625

Analysis Date: 2025-07-20 14:31 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risk. Despite a slight improvement in net assets as of 31 March 2024, the substantial negative net current assets and large director loan account balance raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: The net current liabilities remain very high (£731,118 as of 2024), indicating that current liabilities far exceed current assets, which poses liquidity challenges.
• Large Director Loan Account: The director loan account balance is £802,038, a material liability falling due within one year, which could pressure cash flow if repayment is demanded.
• Volatile Net Asset Position: The company moved from negative net assets (£-2,775 in 2023) to a marginally positive position (£32,960 in 2024), but overall equity remains low relative to liabilities, suggesting fragile capitalization.

3. Positive Indicators:

• Recent Improvement in Net Assets: The company’s net assets improved by approximately £35,735 from the prior year, driven by a reduction in fixed assets disposals and improved profit and loss reserves.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements and reducing regulatory risk.
• Operating in Real Estate with Tangible Assets: Holding investment properties valued at £764,078 provides some asset backing, which could be leveraged or sold if needed.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan account, including repayment schedules and whether it is interest-bearing or convertible to equity.
• Review cash flow statements and profit and loss accounts to assess operational cash generation and sustainability.
• Examine the reasons behind the substantial disposals of fixed assets in the latest year and their impact on future income streams.
• Clarify any contingent liabilities or off-balance sheet commitments that may affect financial stability.
• Confirm the valuation methods used for investment properties and assess market conditions affecting these assets.