Company Number: 13909916

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significantly negative net current assets (working capital) for the past three years, indicating potential liquidity and short-term solvency issues. Despite holding investment property assets, its current liabilities substantially exceed its current assets. The company is very young (incorporated in 2022), with limited financial track record and no audited accounts, which increases uncertainty.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£200,637 in 2024) far exceed current assets (£12,029), resulting in a working capital deficit of approximately £188,608, a persistent and substantial liquidity risk.
• Reliance on Investment Property Revaluation: The company's net assets rely heavily on the revaluation reserve of the investment property (£21,207), which is inherently uncertain and subjective without independent valuation.
• Single Director and Shareholder: Mrs Manjit Kaur Shergill is sole director, secretary, and 100% shareholder, which raises governance and control concentration risks.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is up to date with its accounts and confirmation statement filings, indicating regulatory compliance and organizational discipline.
• Growth in Asset Value: Investment property was revalued upwards from £193,819 to £220,000 in 2024, showing potential appreciation of core assets.
• Small Company Reporting Exemption: Use of abridged, unaudited accounts reduces administrative burden appropriate for a small private company.

4. Due Diligence Notes:

• Verify the basis, method, and independence of the investment property valuation as it significantly impacts net asset value.
• Investigate the nature and timing of the current liabilities, particularly whether they include related party loans or short-term debts that could affect solvency.
• Assess cash flow projections and future funding plans to understand how the company intends to manage the negative working capital.
• Consider obtaining audited financials or further financial disclosures to improve transparency.
• Review director conduct and governance arrangements given the highly concentrated control structure.