Company Number: 14439787

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company shows persistent negative shareholders’ funds and net liabilities, indicating it is insolvent on a balance sheet basis. Current liabilities substantially exceed current assets, reflecting poor liquidity and an inability to meet short-term obligations without refinancing or capital injection.

2. Key Concerns:

• Solvency Deficit: Net liabilities of approximately £18,471 as at 31 October 2024, consistent over the last two years, signal that the company’s liabilities exceed its assets.
• Negative Working Capital: Net current liabilities of about £47,167 indicate cash flow stress and potential difficulty in covering immediate debts.
• Reliance on Long-Term Debt: The presence of £72,000 in bank loans due after one year raises questions about repayment capacity given the weak equity base and negligible current assets.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds tangible fixed assets (land and property) valued at £100,696, which could provide collateral or be leveraged for refinancing.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, showing compliance with statutory filing requirements and no immediate governance concerns.
• Experienced Directors: Both directors are professionals (pharmacist and doctor), which could imply sound management capability, albeit outside typical real estate expertise.

4. Due Diligence Notes:

• Cash Flow Analysis: Detailed cash flow statements and bank statements should be reviewed to understand operational liquidity and funding sources.
• Debt Terms: Clarify the nature and terms of the £72,000 bank loan—interest rates, covenants, maturity profile—to assess refinancing risk.
• Business Model and Revenue Streams: The accounts lack turnover and profit and loss details; investigating the company’s revenue generation, contracts, and operational sustainability is essential.
• Asset Valuation: Confirm the valuation and marketability of the fixed assets, considering potential impairments or restrictions on sale.
• Director Backgrounds: While no disqualifications are noted, further checks on directors’ business track records and related party transactions are advisable.