Company Number: 14719533

Analysis Date: 2025-07-29 19:02 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant current liabilities vastly exceeding current assets, resulting in severely negative working capital. This raises serious concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Shortfall: With cash of only £15,091 against current liabilities of £141,472, the company faces a liquidity gap of over £126k, indicating potential cash flow problems.
• Negative Net Current Assets: The net current liabilities position of £126,381 signals insufficient liquid assets to cover debts due within the year, increasing the risk of default.
• Early Stage with Limited Financial History: Incorporated in March 2023 and reporting only one financial period, the company lacks an operational track record, making it difficult to assess sustainability or future profitability.

3. Positive Indicators:

• Ownership and Control Clarity: The two directors, both significant shareholders with voting rights and appointment powers, suggest a straightforward governance structure with aligned interests.
• Asset Base: The company holds tangible fixed assets valued at £130,059 net of depreciation, which could potentially be leveraged or sold to alleviate financial pressures.
• Compliance: No overdue filings for accounts or confirmation statements indicate current regulatory compliance and good standing with Companies House.

4. Due Diligence Notes:

• Investigate the nature and terms of the £139,182 “other creditors” due within one year to understand repayment obligations and whether any are related party loans or trade payables.
• Assess the company's cash flow forecasts and planned funding sources to mitigate liquidity risks given the negative net current assets.
• Review business plans and contracts related to the physical well-being and accommodation activities to evaluate operational sustainability and revenue generation capability.
• Confirm if there are any contingent liabilities, guarantees, or related party transactions not visible in the filed accounts.
• Verify if the tangible fixed assets include any encumbrances or restrictions on disposal.