Company Number: 13146814

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

1. Risk Rating: MEDIUM

The company’s financial position exhibits characteristics that warrant caution. While it holds substantial fixed assets, the persistent negative net current assets and high short-term liabilities relative to current assets indicate liquidity stress. However, a slight improvement in net assets to a positive figure in the latest year suggests some recovery.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities exceeding £120k, signifying potential difficulties in meeting short-term obligations.
• High Current Liabilities: Current liabilities remain significant (£130k+), almost 34 times the current assets, which may strain cash flows and operational flexibility.
• Small Share Capital & Equity Base: With share capital of only £100 and minimal shareholders’ funds (£9,244), the company has limited equity buffer to absorb losses or shocks.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets have remained stable at approximately £357k, indicating some asset backing to the business.
• Improvement in Net Assets: The company moved from a negative net asset position in previous years to a modest positive net asset figure as of January 2024, showing a potential turnaround or injection of equity/profits.
• Compliance: The company is active with no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance in this respect.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, especially those falling due within one year, to assess repayment schedules and potential refinancing risks.
• Review cash flow statements or management accounts (if available) to understand operating cash flows and whether liquidity issues are being managed effectively.
• Clarify the source of the recent improvement in net assets—whether from retained earnings, capital injection, or revaluation of assets.
• Assess the business model sustainability given zero reported employees and reliance on fixed assets for real estate trading activities.
• Confirm no director disqualifications or adverse conduct records associated with the current directors.