Company Number: 14616222

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows a strong asset base predominantly in investment property (£21.67M) but has significant current liabilities exceeding current assets by over £9M, indicating liquidity strain. The company is recently incorporated (2023) with limited financial history and relies on related party loans. While net assets are positive (£3.09M), the high short-term liabilities and reliance on secured debt present moderate solvency and liquidity risks.

2. Key Concerns:

• Significant net current liabilities (£-9.1M) reflecting potential short-term liquidity issues.
• Heavy reliance on related party loans (£9.29M current and £8.46M non-current bank loans secured), indicating financing concentrated within group entities and potential refinancing risk.
• Company is newly formed with no profit & loss statement disclosed, limiting visibility on operational cash flows or profitability.

3. Positive Indicators:

• Substantial fixed assets primarily investment property valued at £21.67M with recent revaluation surplus, supporting asset backing.
• Positive net assets and shareholders funds of £3.09M, indicating equity buffer above liabilities.
• Directors are qualified professionals (accountant, solicitor, chartered surveyor) suggesting experienced governance.

4. Due Diligence Notes:

• Review the underlying tenancy agreements and income streams from the investment property to assess operational cash flow sustainability.
• Investigate terms and conditions of related party loans and bank loans to understand repayment schedules, covenants, and refinancing risks.
• Obtain management accounts or forecasts to evaluate ongoing liquidity and profitability since incorporation.
• Confirm no overdue filings or compliance issues beyond those disclosed; current filings are up to date.