Company Number: 13835467

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position worsening over three years, with liabilities exceeding assets by over £34,000 at the latest reporting date. The significant current liabilities and especially the large non-current liabilities relative to current assets raise serious concerns about solvency and liquidity.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net liabilities indicate an insolvency position on a balance sheet basis, which is a critical red flag for investors.
• High Long-term Debt: Creditors due after more than one year increased substantially to £1.63 million in 2025 from £633k in 2024, far exceeding current assets and net current assets, suggesting over-leverage.
• Lack of Operational Activity: The company has zero employees and minimal current assets, implying limited operational scale and potential cash flow generation challenges.

3. Positive Indicators:

• Asset Base Growth: Fixed assets increased significantly from £885,920 in 2024 to £1,585,057 in 2025, indicating investment in potentially income-generating real estate assets aligned with its SIC codes.
• Timely Filings: The company has no overdue accounts or confirmation statements, suggesting compliance with statutory filing requirements.
• Experienced Directors: Both directors have been in place since incorporation and control the company equally, which may support stable governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the current and long-term liabilities, including repayment schedules and covenants, to assess refinancing risk.
• Review cash flow statements or management accounts if available to evaluate liquidity beyond balance sheet snapshots.
• Assess the valuation and marketability of fixed assets, as reliance on these assets for solvency depends on their realizable value.
• Clarify the operational model given no employees and minimal current assets—determine if the company is actively generating rental income or other revenues.
• Confirm no director disqualifications or regulatory issues beyond what is publicly disclosed.