Company Number: 12441368

Analysis Date: 2025-07-20 17:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent and substantial net current liabilities exceeding £2 million, despite holding over £2.2 million in fixed assets. The marginal positive net asset position (£47,565) in 2024 reflects minimal equity buffer relative to current liabilities, indicating elevated financial risk.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (~£2.18m) vastly exceed current assets (~£20k), resulting in a net current liability position of approximately £2.16m, signaling potential cash flow distress and difficulty meeting short-term obligations.
• Minimal Share Capital and Equity Cushion: Share capital is only £200 with shareholders’ funds just £47,565, offering limited capacity to absorb losses or raise capital internally.
• Reliance on Fixed Assets for Solvency: The company’s net assets are largely comprised of fixed assets which may not be readily liquidated to cover liabilities, raising questions about actual liquidity and solvency under stress.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory accounts and confirmation statement filings, indicating compliance with basic regulatory requirements.
• Active Status with No Liquidation: The company remains active and is not under any formal insolvency procedures such as liquidation or administration.
• Stable Fixed Asset Base: Fixed assets have remained steady around £2.2 million over recent years, suggesting asset holdings have not been impaired or diminished.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities to assess repayment timelines, interest obligations, and potential refinancing risks.
• Verify valuation and liquidity of fixed assets to understand realisable value in a stressed scenario.
• Understand cash flow generation and operational income to evaluate if ongoing operations can cover current liabilities and support business sustainability.
• Review director and shareholder plans for capital injection or debt restructuring given low equity levels.
• Confirm absence of any director disqualifications or regulatory actions beyond current data.