Company Number: 14151771

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   The company demonstrates a persistent and significant net current liability position coupled with a reliance on director financial support, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £265,326 as of June 2024, slightly improved from £270,801 in 2023, indicating ongoing short-term liquidity pressure.
• Reliance on Directors’ Support: The directors have explicitly stated they will continue to support the company financially, suggesting operational cash flows are insufficient to meet obligations without external funding.
• Concentration in Investment Property: The company’s assets are concentrated in a single investment property valued at £269,790, limiting asset liquidity and increasing exposure to real estate market fluctuations.

3. Positive Indicators:

• Profitability Improvement: The company moved from a loss of £1,111 in 2023 to a modest profit of £5,475 in 2024, indicating some operational progress.
• Up-to-date Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and governance discipline.
• Stable Asset Valuation: The investment property valuation remained stable year-on-year, showing no impairment or write-downs.

4. Due Diligence Notes:

• Investigate the nature and terms of the short-term creditors (£391,346) to assess repayment schedules and any refinancing risks.
• Review cash flow forecasts and director funding commitments to evaluate the sustainability of ongoing financial support.
• Examine lease agreements and rent receivable consistency to validate the reliability of turnover reported from investment property.
• Verify that no contingent liabilities or off-balance sheet obligations exist that could exacerbate liquidity strain.
• Assess market conditions for the investment property to determine potential for asset liquidation or revaluation.