Company Number: 12399694

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: MEDIUM
   The company maintains a positive net asset position with modest profits, but shows a high level of long-term liabilities relative to equity and current assets, indicating moderate solvency and liquidity risks.

2. Key Concerns:

• High Long-Term Creditors: The company has substantial long-term liabilities (£341,637) compared to net assets (£3,479), which could pressure solvency if cash flows weaken.
• Low Turnover: Annual turnover is very low (£16,200 in 2024), which raises concerns about sustainable operational cash generation.
• Minimal Share Capital and Equity Cushion: Share capital is nominal (£10), and shareholders' funds are minimal, limiting the company's ability to absorb financial shocks.

3. Positive Indicators:

• Consistent Net Assets: Net assets have remained positive and relatively stable over recent years, suggesting no erosion of capital.
• Positive Profit for the Year: The company reported a small profit (£14 in 2024), indicating at least break-even performance.
• Current Assets Exceed Short-Term Creditors: Current assets (~£41,600) exceed short-term liabilities (~£404), indicating liquidity to cover immediate obligations.

4. Due Diligence Notes:

• Nature of Long-Term Creditors: Investigate the composition and terms of the significant long-term liabilities to assess repayment risk and potential refinancing needs.
• Revenue Model and Cash Flow: Clarify the business model generating such low turnover against the asset base, and verify cash flow adequacy for debt servicing.
• Director and Shareholder Background: Review directors’ capacity and track record given the large financial obligations and limited equity buffer.
• Regulatory Compliance: Confirm timely filing of all accounts and confirmation statements (appears current) and check for any regulatory or compliance flags not identified here.