Company Number: 15843413

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   Justification: The company shows net current liabilities of £65,821 and net liabilities overall of £5,530 despite being newly incorporated less than a year ago. The significant bank loan of £203,184 compared to only £4,079 in cash and minimal equity capital suggests solvency and liquidity pressures. Negative shareholders' funds indicate potential financial distress risk.

2. Key Concerns:

• Negative net assets and shareholders’ funds, indicating a balance sheet deficit at the first year end.
• Large long-term bank loan (£203k) compared to low cash reserves and current assets, raising liquidity and debt servicing concerns.
• The company is very recently incorporated (July 2024) with limited operational history to demonstrate business sustainability or revenue generation.

3. Positive Indicators:

• The company holds tangible fixed assets valued at £263,475 (land and buildings), which could provide security against liabilities if properly valued and marketable.
• No overdue filings or confirmation statements, implying compliance with statutory requirements to date.
• Full ownership and control by a single director/shareholder may allow for swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loan, including repayment schedule, covenants, and security arrangements against the fixed assets.
• Review the business plan and cash flow forecasts to assess how the company intends to improve liquidity and solvency.
• Obtain further financial details on revenue, profitability, and debtor/creditor aging to evaluate operational stability.
• Confirm the valuation and marketability of the tangible fixed assets to ascertain if they can be realized in a stressed scenario.
• Monitor director conduct and any related party transactions given sole control by Mr. Otman.