Company Number: 14616565

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, demonstrated by negative net assets and net current liabilities substantially exceeding cash reserves. Given its very recent incorporation and limited operating history, the financial position is precarious.

2. Key Concerns:

   • Negative Net Assets (£-76,065): The company's liabilities exceed its assets, indicating insolvency on a balance sheet basis.
   • Severe Liquidity Shortfall: Cash of only £2,343 versus current liabilities near £190,000 suggests inability to meet short-term obligations without additional financing.
   • High Long-Term Debt (£198,454 bank loans): Large outstanding bank loans compared to total assets raise concerns about debt servicing capability and refinancing risk.

3. Positive Indicators:

   • Substantial Fixed Assets (£310,000 land and buildings): Ownership of tangible fixed assets provides some value backing and potential collateral for financing.
   • No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue returns, indicating good regulatory compliance.
   • Single Controlling Shareholder/Director: Clear governance structure with one director who also holds 100% control may facilitate decisive management actions.

4. Due Diligence Notes:

   • Investigate the terms and conditions of the bank loans, including interest rates, repayment schedules, and covenants.
   • Review cash flow projections and funding plans to assess how current liabilities will be met and whether further capital injections are expected.
   • Confirm status and market value of the fixed assets (land and buildings) to evaluate their liquidity and realistic recoverable amount in distress.
   • Evaluate the company’s business model viability given it has no employees and was incorporated recently, and ascertain sources of ongoing operational funding.