Company Number: 12450003

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and negative shareholders’ funds as of the latest financial year. The large creditor balance due to a director further highlights financial stress and potential reliance on related party funding.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: At 31 December 2023, the company’s net assets were negative £5,834 and shareholders’ funds negative £6,684, indicating insolvency on a balance sheet basis.
• Liquidity Shortfall: Current liabilities (£1,501) exceed current assets (£967), resulting in negative net current assets of £534, a deterioration from prior years when net current assets were positive. Cash reserves are minimal (£117).
• Related Party Debt: The company owes £5,300 to a director, representing a large portion of total liabilities. This related party financing may indicate cash flow difficulties and dependency on director funding, raising governance questions.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with Companies House filing deadlines for both accounts and confirmation statements, suggesting sound regulatory compliance.
• Going Concern Statement: Directors affirm a reasonable expectation of continued operation for at least 12 months, which may indicate access to additional resources or plans to improve finances.
• Ownership and Control: The company is majority controlled by Synovia Holdings Ltd, which may provide strategic or financial support.

4. Due Diligence Notes:

• Investigate the nature and terms of the £5,300 director loan, including repayment plans and implications for creditor priority.
• Review cash flow forecasts and any financing arrangements or guarantees that support the going concern assertion.
• Assess operational activities given zero turnover reported in 2022 and 2023, which may signal suspended or limited trading.
• Confirm details on the company’s asset base and valuation of real estate holdings given the SIC code (Buying and selling of own real estate) and historical turnover decline.
• Examine director backgrounds and any potential conflicts of interest related to related party transactions.