Company Number: 14252817

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: HIGH

The company presents a high risk profile primarily due to negative net assets, net current liabilities exceeding fixed assets, and a very recent incorporation date with limited operational history.

2. Key Concerns:

• Solvency risk is significant as the company’s net assets are negative (£-12,362), indicating liabilities exceed total assets.
• Liquidity concerns arise from net current liabilities of £279,180, suggesting the company may struggle to meet short-term obligations.
• Operational stability is uncertain given the company was incorporated only in July 2022, with minimal employee count (2) and no reported turnover or profitability data to indicate sustainable cash flow or revenue generation.

3. Positive Indicators:

• The company has submitted accounts and confirmation statements on time, indicating compliance with filing requirements.
• Directors possess relevant experience with one director listed as a hotelier, which aligns with the company’s SIC classification (55100 - Hotels and similar accommodation).
• Ownership and control are clearly defined and stable, with two directors each holding 25-50% shares and voting rights, which may support coherent governance.

4. Due Diligence Notes:

• Investigate the nature of the liabilities contributing to the current liabilities figure (£279,180). Are these trade payables, short-term borrowings, or other obligations?
• Review any underlying business plans, cash flow forecasts, or funding arrangements to understand how the company intends to address the negative working capital and net asset position.
• Assess the value and nature of fixed assets (£266,718) to confirm if they are tangible operational assets or potentially intangible or overvalued items.
• Confirm if there has been any external financing or shareholder support post the reporting date to improve liquidity.
• Consider the operational status of the hotel business: has it commenced trading fully, and what is the revenue generation outlook?