Company Number: 13153217

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent net liabilities, negative working capital, and large current liabilities relative to minimal current assets and cash.

2. Key Concerns:

• Persistent Negative Shareholders’ Funds: The company’s net assets are negative (£-36,391 in 2024), indicating accumulated losses and an insolvency position on a balance sheet basis.
• Negative Net Current Assets: The company has a substantial working capital deficit (£-222,291 in 2024), suggesting it may struggle to meet short-term obligations as they fall due.
• High Current Liabilities Relative to Minimal Cash and Debtors: Current liabilities (£447,714) far exceed current assets (cash and debtors only £330 in 2024), which is a strong liquidity red flag.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds significant fixed assets (£633,614) which may provide some collateral value or operational base.
• Timely Filing and Compliance: No overdue accounts or confirmation statements were noted; filings are up to date, suggesting regulatory compliance and governance awareness.
• Single Director with Significant Control: Mr Victor Edwards has been continuously involved since incorporation, providing clear leadership continuity.

4. Due Diligence Notes:

• Investigate the nature and security of the fixed assets to assess realizable value and potential to mitigate liabilities.
• Review the company’s cash flow forecasts and creditor arrangements to understand how it manages ongoing liquidity challenges.
• Clarify the source and structure of current liabilities (£447,714), including any loans, leases, or creditor terms, to gauge financial obligations and refinancing risks.
• Obtain detailed profit and loss information (not filed) to assess operational profitability and future earnings potential.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments that might exacerbate financial stress.
• Assess the business model for sustainability, including tenant occupancy, rental income stability, and market conditions for property lettings in Hull.