Company Number: 13050324

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities and negative shareholders’ funds, combined with a large current liability exceeding current assets by a wide margin. The absence of employees and minimal cash reserves relative to liabilities further exacerbate liquidity and operational risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company shows net liabilities of £11,359 as of the latest accounts, worsening from previous years, indicating financial distress and potential insolvency issues.
• Excessive Current Liabilities Relative to Current Assets: Current liabilities stand at approximately £943,223, while current assets (cash) are only £8,223, resulting in a negative net current asset position of -£392,835, signaling liquidity strain.
• Dependence on Director Loans and Bank Loans: A significant portion of short-term creditors are loans from directors (£400,408), and long-term liabilities are dominated by bank loans (£943,223). This reliance poses refinancing and repayment risk if operating cash flows are insufficient.

3. Positive Indicators:

• Substantial Tangible Fixed Assets: The company holds tangible fixed assets (land and buildings) valued at £1,324,699, which may provide collateral value and underpin future refinancing or sale options.
• Timely Filing and Compliance: The company is current with accounts and confirmation statement filings, indicating basic regulatory compliance and governance adherence.
• Experienced Leadership Team: Directors have been in post since incorporation, suggesting stable management continuity.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedules of the director loans and bank loans to assess refinancing risk and creditor pressure.
• Review cash flow forecasts and operational plans to determine the company’s ability to service liabilities and improve liquidity.
• Examine the valuation and marketability of the fixed assets to evaluate their potential to support debt restructuring or asset sales.
• Confirm there are no undisclosed contingent liabilities or legal actions that could further impair financial stability.
• Assess the underlying business model and revenue generation, given the absence of employees and negative profit and loss reserves.