Company Number: 13041634

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity issues, with consistently negative net current assets and a substantial current liabilities burden relative to its minimal current assets. Although the fixed assets base is sizeable, heavy short-term and long-term creditor obligations and marginal net equity suggest financial stress and potential solvency risk.

2. Key Concerns:

• Liquidity Deficit: As of the latest accounts, net current assets stand at approximately -£205,835, indicating the company does not have sufficient short-term assets to cover its immediate liabilities, raising cash flow concerns.
• High Long-Term Creditors: Creditors due after more than one year total around £328,781, which is large relative to net assets of only £5,467, implying reliance on external funding and potential refinancing risk.
• Minimal Equity and Share Capital: Share capital is nominal (£1.00), and shareholders’ funds are very low (£5,467), suggesting limited capital buffer to absorb losses or fund operations without external financing.

3. Positive Indicators:

• Consistent Fixed Asset Base: Fixed assets have remained stable at £545,933, indicating maintained investment in real estate assets aligned with their SIC codes for property letting and trading.
• Up to Date Filings: Both accounts and confirmation statement are filed on time with no overdue filings, reflecting compliance with statutory requirements.
• No Employees: The company currently operates without employees, potentially keeping operating costs low and manageable.

4. Due Diligence Notes:

• Investigate the nature and terms of the company's creditor arrangements, especially the large amounts due after one year, to assess refinancing risk and covenant compliance.
• Review detailed cash flow statements and management accounts to understand operational cash generation or reliance on external funding.
• Clarify the business model and revenue streams, given the minimal current assets and negative working capital, to evaluate operational sustainability.
• Confirm whether any related party transactions exist, especially given the small equity base and director occupancy at the registered address.
• Assess the directors’ plans or strategies to improve liquidity and solvency, including any capital injections or asset disposals.
• Verify absence of director disqualifications or regulatory issues, although none are indicated in current data.