Company Number: 13150405

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: LOW
   The company demonstrates strong solvency and liquidity positions with substantial net current assets and positive shareholders’ funds. There are no overdue filings or indicators of regulatory non-compliance. Losses reported are relatively small compared to net assets, and the company holds significant investments and tangible assets.

2. Key Concerns:

• Losses and Negative Reserves: The company has incurred cumulative losses reflected in the profit and loss reserves (£376,719 negative), indicating some operational challenges or investment write-downs.
• Concentration of Directors’ Loans: A significant debtor balance (£383,879) is due from directors, repayable on demand, posing potential liquidity risk if repayment is delayed or defaulted.
• Limited Employee Base: Operating with only one employee (including directors) may raise concerns about operational capacity and sustainability for business growth or continuity.

3. Positive Indicators:

• Strong Asset Base: Fixed asset investments increased to over £2 million, with total assets less current liabilities exceeding £3.5 million, showing a solid capital structure.
• Healthy Liquidity: Net current assets exceed £1.4 million, with current liabilities well covered by current assets, reducing short-term liquidity risks.
• Compliance and Governance: No overdue accounts or confirmation statements; filings are up to date with no audit exemption issues, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and recoverability of director loans included in debtors to assess liquidity and potential conflicts of interest.
• Review the causes of recurring losses and the business model sustainability given the negative profit and loss reserves.
• Assess operational capacity given the minimal employee count and determine if additional resources are planned or required.
• Confirm valuation methodology and assumptions for fixed asset investments and revaluation reserve movements for accuracy and prudence.