Company Number: 13462996

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities consistently over the last two years, indicating a weak equity position and poor short-term liquidity. The total liabilities significantly exceed current assets, and the company has substantial long-term debt. These factors suggest solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: Shareholders' funds are negative (£-7,391 as of 31 March 2024), indicating liabilities exceed assets, which is a red flag for solvency.
• Working Capital Deficit: Net current liabilities of approximately £41,440 show the company may struggle to meet short-term obligations from current assets.
• High Long-Term Debt: Bank loans of about £98,164 with minimal repayments due within one year increase financial leverage and potential refinancing risks.

3. Positive Indicators:

• Filing Compliance: The company is current with both accounts and confirmation statement filings, suggesting good regulatory compliance.
• Stable Fixed Asset Base: The company holds tangible fixed assets (freehold property) valued at £130,000, which may provide collateral value.
• Experienced Directors: The presence of multiple directors and significant shareholders with clear control may support management continuity.

4. Due Diligence Notes:

• Review Debt Terms: Investigate the nature and covenants of the bank loans, repayment schedule, interest rates, and any potential refinancing needs.
• Evaluate Cash Flow Projections: Assess the company’s future cash flow forecasts to determine if it can improve liquidity and reduce working capital deficits.
• Confirm Property Valuations: Verify the valuation and marketability of the fixed assets, especially the freehold property, and whether it adequately supports the debt.
• Investigate Related Party Transactions: There are amounts owed by group undertakings (£32,406), which require review for collectability and commercial terms.
• Understand Business Model Sustainability: As a property rental and management entity, assess tenant stability, occupancy rates, and market conditions impacting revenue.