Company Number: 14344904

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: HIGH
   The company shows significant and increasing net current liabilities and negative shareholders’ funds, indicating serious solvency and liquidity concerns. The scale of director loans also suggests reliance on insider funding rather than operational cash flow.

2. Key Concerns:

• Severe Negative Net Current Assets: Net current liabilities have grown from approx. £42.4k (2023) to £68.6k (2024), indicating the company cannot cover short-term obligations from current assets.
• Negative Shareholders’ Funds: Equity deteriorated from approx. -£41.7k to -£68.1k in one year, evidencing accumulated losses and erosion of capital base.
• High Director Loans: £87k owed to directors as short-term liabilities highlights dependence on related-party funding, which may not be sustainable or readily repayable.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance.
• Clear Ownership and Governance: Single PSC with majority control and clear director appointments, which may facilitate decisive management actions.
• No Employees: Operating with zero staff may imply low fixed operating costs, possibly reducing cash burn.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: Are they repayable on demand? What are the conditions and any security?
• Review the company’s business model and revenue streams in wholesale alcoholic beverages to assess potential for turnaround or growth.
• Clarify why the company has no employees and how operations are conducted (outsourcing, contractors).
• Examine cash flow projections and any plans to address the worsening negative net assets and liquidity shortfall.
• Assess risks related to reliance on a single majority shareholder and director for control and funding.