Company Number: 13310849

Analysis Date: 2025-07-29 15:09 UTC

1. Risk Rating: MEDIUM

The company shows a significant asset base dominated by investment property but also a substantial level of creditor obligations, particularly amounts owed to directors and long-term bank loans. The net asset position is positive but modest relative to liabilities, indicating moderate solvency risk. The absence of cash reserves raises liquidity concerns despite the asset-backed nature of the business.

2. Key Concerns:

• Liquidity Position: The company holds zero cash at the year-end and has net current liabilities of approximately £1.8 million, indicating potential short-term liquidity stress.
• High Related Party and Director Loans: Amounts owed to directors total over £1.58 million, comprising a large portion of current liabilities, which may pose refinancing or repayment risk.
• Leverage and Debt Maturity Profile: Total bank loans exceed £1 million with a significant portion due after one year, which could pressure future cash flows, especially given no reported turnover or operating income.

3. Positive Indicators:

• Significant Investment Property Asset: Investment property valued at £2.9 million provides a strong fixed asset base and potential collateral for financing.
• No Overdue Filings: The company is compliant with filing deadlines, indicating good regulatory compliance.
• Stable Ownership and Control: Directors and persons with significant control are consistent and resident in the UK, which supports governance transparency.

4. Due Diligence Notes:

• Verify the liquidity management strategy given zero cash and high current liabilities.
• Review terms and conditions of director loans and bank financing to assess repayment schedules and security.
• Obtain turnover and income details to evaluate operational cash flows, since turnover is not disclosed in the accounts.
• Confirm valuation methodology and marketability of investment property assets.
• Investigate related party transactions for potential conflicts or dependency risks.