Company Number: 12452229

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent net current liabilities and negative shareholders' funds. The high level of long-term debt relative to assets and ongoing losses raise concerns about its financial stability.

2. Key Concerns:

• Negative Net Current Assets: The company reports a net current liability position of approximately £171,930 for the latest year, indicating potential short-term liquidity issues.
• Negative Shareholders’ Funds: Shareholders’ deficit stands at around £23,852, reflecting accumulated losses and eroded equity base, which threatens long-term solvency.
• High Long-Term Debt: Creditors due after one year amount to £374,714, surpassing total assets less current liabilities, which may impose heavy debt servicing burdens and restrict operational flexibility.

3. Positive Indicators:

• Growth in Investment Property Assets: Tangible assets, mainly investment properties, increased from £442,671 to £522,792, suggesting ongoing asset base expansion.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance practices.
• Stable Management Team: Directors have been in place since incorporation with no adverse conduct records noted, supporting operational continuity.

4. Due Diligence Notes:

• Verify the terms, covenants, and repayment schedule of long-term loans totaling £374,714 to assess refinancing risk.
• Review cash flow forecasts and liquidity management plans given persistent negative working capital.
• Obtain confirmation on the valuation methodology and frequency of investment property revaluations, and whether any impairments might be necessary.
• Investigate related party loan arrangements totaling £135,129 for potential conflicts of interest or risk exposure.
• Assess business model sustainability given zero employees and reliance on key management personnel with relatively high remuneration.