Company Number: 14210597

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: HIGH
   The company shows a concerning financial structure with zero net assets and shareholders’ funds, combined with significant long-term liabilities almost equal to fixed assets. Such a balance sheet suggests solvency risk and financial vulnerability.

2. Key Concerns:

• Solvency Risk: The company’s net assets and shareholders' funds are reported as zero despite holding fixed assets valued around £273k. Corresponding long-term creditors (over £273k) offset these assets, indicating no equity buffer.
• Liquidity Concerns: Current assets are negligible (£0) with minimal net current assets (£950), suggesting limited liquidity to meet short-term obligations. There is no cash or equivalents reported.
• Operational Stability: The company reported continuous losses (£8,936 in 2024 and £5,708 in 2023) with minimal turnover (£10,450 in 2024), indicating limited operational income and negative profitability trends.

3. Positive Indicators:

• The company is current with all statutory filings, including accounts and confirmation statements, indicating compliance with Companies House requirements and good governance in this respect.
• The fixed assets base suggests ownership of real estate assets, which may provide collateral value or potential for future income or sale proceeds.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (~£273k) to understand repayment schedules, interest obligations, and creditor identity.
• Clarify the reasons behind the persistent losses and low turnover, including whether the company is in a start-up phase, asset-holding phase, or facing operational difficulties.
• Confirm the valuation and condition of fixed assets (real estate) and whether any impairment or revaluation has been considered.
• Review cash flow statements and management plans for improving liquidity and solvency.
• Assess the background and financial standing of the directors for additional risk indicators.