Company Number: 13256404

Analysis Date: 2025-07-29 15:31 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net assets and net current liabilities, which persist over multiple years. This indicates solvency risk and potential challenges in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £9,752 as of 31 March 2024, improving slightly from £34,675 the prior year but still negative, reflecting accumulated losses and weakened equity.
• Negative Working Capital: Current liabilities exceed current assets by approximately £1.47 million as of the latest accounts, indicating liquidity stress and potential cash flow difficulties. Despite a sizeable cash balance, the high short-term creditor levels suggest operational or financing constraints.
• Reliance on Investment Property Valuations: A large portion of the fixed assets (£1.46 million) is in investment properties, valued by management estimates of fair value. The company’s financial health is therefore sensitive to property market fluctuations and valuation assumptions, which may not be immediately liquid or realizable.

3. Positive Indicators:

• Cash Reserves: The company holds a substantial cash balance (£929,821), which somewhat mitigates immediate liquidity risk despite negative working capital.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance adequacy.
• Stable Management and Ownership: Directors and persons with significant control are identified with no records of disqualification or governance concerns, supporting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand their composition, maturity profiles, and any contingent liabilities or related party transactions.
• Review the valuation methodology and market conditions supporting investment property values, including any independent appraisals or impairments.
• Assess cash flow statements and operational results (not provided) to determine the company’s ability to service debts and fund ongoing operations.
• Confirm the impact of director changes during 2024 and any strategic shifts or refinancing plans implemented or planned.