Company Number: 13682356

Analysis Date: 2025-07-20 12:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns demonstrated by persistent negative net assets and shareholders' funds, alongside substantial working capital deficits. The rapid increase in current liabilities relative to current assets raises liquidity risks. Although the company holds investment properties, their recent marked revaluation losses undermine asset base reliability.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities worsened sharply from -£5,809 in 2023 to -£141,783 in 2024, reflecting ongoing losses and erosion of equity.
• Severe Working Capital Deficit: At the 2024 year-end, net current liabilities stood at approximately -£339k, indicating an inability to cover short-term obligations from current assets including cash.
• Significant Loan and Creditor Exposure: Current and non-current liabilities increased markedly due to loans and creditor balances (e.g., £225k Otendal Loan, £125k Bay Properties loan), suggesting reliance on external financing that may strain cash flow.

3. Positive Indicators:

• Active Status and Compliance: The company is active with all filings up to date and no overdue accounts or confirmation statements, indicating adherence to regulatory requirements.
• Investment Property Holdings: Fixed assets increased significantly to £335k, although affected by a revaluation loss, these properties represent tangible assets.
• Experienced Directors and PSC Transparency: Two directors with clear roles and a corporate PSC holding majority shares provide some governance structure and control clarity.

4. Due Diligence Notes:

• Examine Cash Flow Statements and Profit & Loss Details: The available data lacks detailed income statement information and cash flow analysis to assess operational profitability and liquidity dynamics.
• Evaluate Loan Terms and Covenants: Investigate the nature, maturity, interest rates, and security arrangements of the substantial loans recorded to assess refinancing risk and creditor pressure.
• Assess Investment Property Valuation Methodology: Given the significant revaluation loss in the latest year, review valuation assumptions and potential market risks affecting asset realizability.