Company Number: 14114500

Analysis Date: 2025-07-20 16:49 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity challenges with current liabilities far exceeding current assets, resulting in negative net current assets. The nature of the company as a non-trading entity with minimal operational activity further elevates risk. The large related party creditor balance also indicates reliance on shareholder funding rather than commercial cash flow.

2. Key Concerns:

• Liquidity Deficit: Current assets (£30,885) are substantially lower than current liabilities (£413,982), yielding net current liabilities of approximately £383k, indicating an inability to meet short-term obligations from liquid resources.
• Related Party Debt Reliance: Over £410k of current liabilities are amounts owed to the sole shareholder, suggesting operational funding is dependent on shareholder loans rather than independent cash generation.
• Non-trading Status: The SIC code classifies the company as non-trading, implying no significant commercial activity or revenue generation, raising concerns over sustainability without ongoing capital injections.

3. Positive Indicators:

• Investment Property Asset: The company holds an investment property valued at approximately £399k, which provides a tangible asset base that could be realised to reduce liabilities if necessary.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Sole Director with Legal Expertise: The director is a lawyer, which may support competent governance and regulatory compliance.

4. Due Diligence Notes:

• Verify the nature and terms of the shareholder loans including repayment schedules, interest terms, and any possible conversion to equity.
• Confirm the liquidity and marketability of the investment property asset and whether it can be leveraged or sold to improve solvency.
• Investigate any plans to generate trading income or alternative funding sources to reduce dependency on shareholder loans.
• Review cash flow forecasts and management plans for meeting imminent liabilities given the negative working capital position.
• Assess the risk impact of the non-trading classification on future viability and investor returns.