Company Number: 13468268

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has deteriorated over recent years, coupled with persistent net current liabilities, indicating solvency and liquidity challenges. The lack of independent valuation of investment properties and a small asset base relative to liabilities further accentuates financial risk.

2. Key Concerns:

• Negative Equity Position: Net liabilities increased from £924 in 2023 to £5,639 in 2024, reflecting accumulated losses and shareholder deficit.
• Working Capital Deficit: Net current assets remain negative (£-51,505 in 2024), with current liabilities exceeding current assets, suggesting potential cash flow constraints.
• Valuation and Asset Quality: Investment property value declined from £88,138 to £46,244 without independent valuation, raising questions about asset recoverability and fair value reliability.

3. Positive Indicators:

• Cash Increase: Cash balance improved substantially from £10,799 in 2023 to £67,403 in 2024, which may provide short-term liquidity buffer.
• Stable Debtors: Trade debtors remain consistent at £80,000, indicating predictable receivables.
• Compliance: Company is up to date with accounts and confirmation statement filings, with no overdue returns or penalties noted.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the £80,000 debtors balance to assess liquidity risk.
• Clarify the rationale and methodology behind the investment property valuation, especially given the absence of independent valuation and significant disposals.
• Review the terms and creditors behind the current liabilities of £198,908 to understand short-term obligations and potential refinancing requirements.
• Assess directors’ plans for addressing the negative equity and working capital deficits to understand sustainability and operational continuity.