Company Number: 13267140

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset position and positive net current assets, but has significant long-term secured debt and provisions that could pressure solvency if cash flows weaken. The limited scale and single director control add concentration risk.

2. Key Concerns:

• High secured loan balance (£203k) relative to net assets (£47k), which may constrain financial flexibility and increase refinancing risk.
• Provision for deferred tax liabilities (£15.8k) appears newly recognized, potentially indicating tax timing issues or valuation changes that could affect future cash outflows.
• Low liquidity evidenced by nominal cash balances (£2) and reliance on amounts owed by connected companies (£41k), which may not be readily collectible, posing short-term funding risk.

3. Positive Indicators:

• The company holds investment property valued at £258k, providing a tangible asset base that secures the long-term loan.
• Positive net current assets (£7.8k) and overall net assets indicate some buffer above liabilities.
• No overdue filings or compliance issues, with accounts filed timely and director affirming going concern status.

4. Due Diligence Notes:

• Investigate the nature and collectability of amounts owed by connected companies (£41k) to confirm liquidity.
• Review terms and covenants of the secured loan to assess refinancing risk and impact on solvency.
• Clarify reason for deferred tax provision recognition and potential future tax liabilities.
• Assess the operational business model and revenue streams, as turnover and income statement details are not disclosed, limiting operational risk assessment.
• Confirm director's role and any related party relationships to evaluate governance and potential conflicts.