Company Number: 13888977

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-8,341) and net current liabilities (£-7,251) as of the latest financial year end. Its total liabilities exceed its assets, indicating solvency concerns. The presence of significant bank borrowings and other creditors due after one year (£284,690) against relatively modest current assets and cash raises liquidity risk.

2. Key Concerns:

• Negative shareholders’ funds and net assets indicate the company is technically insolvent on a balance sheet basis.
• High long-term liabilities (£284,690) compared to fixed assets (£283,600) and very low current assets, with cash of only £1,509, suggest potential difficulties meeting short-term and long-term obligations.
• Investment property valuation is director-assessed rather than independently verified, potentially overstating asset values and masking deeper financial weakness.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, indicating regulatory compliance and proper governance.
• The business is a property letting entity with a tangible fixed asset base (investment property valued at £283,600) which may provide some recovery value in distress scenarios.
• Sole director and 100% shareholder is identified with no red flags such as disqualification or multiple directorships noted, implying clear control and responsibility.

4. Due Diligence Notes:

• Verify the valuation methodology and independence of the investment property valuation to ascertain true asset value and potential impairment.
• Review loan agreements and creditor terms for the £284,690 long-term liabilities, including any covenants or repayment schedules that could impact cash flow.
• Obtain cash flow forecasts and operating performance details to assess ongoing liquidity and operational viability given current negative working capital.
• Investigate any contingent liabilities or off-balance sheet commitments related to the property or financing arrangements.