Company Number: 14816983

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: HIGH
   The company shows a highly leveraged capital structure with total liabilities vastly exceeding current assets and net assets barely above zero. This indicates a significant solvency risk despite the presence of tangible assets.

2. Key Concerns:

• High Long-Term Debt: The company carries £789,367 in creditors due after one year against net assets of only £2,042. The gearing ratio is extremely elevated.
• Negative Working Capital: Current liabilities (£1,695) are almost negligible compared to the bank loans and director loans, but the overall liquidity position is weak given the very low cash balance (£7,846).
• Director Loan Dependency: The company relies heavily on a director loan of £439,191 not repayable within the next year, reflecting potential funding vulnerability and related party risk.

3. Positive Indicators:

• Substantial Fixed Assets: Tangible fixed assets total £714,305, primarily freehold property, providing collateral value.
• No Overdue Filings: Accounts and confirmation statements are up to date with no overdue filings or penalties, reflecting compliance with regulatory requirements.
• Single Shareholder Control: The sole director and 100% shareholder ensures streamlined decision-making and governance clarity.

4. Due Diligence Notes:

• Investigate the terms and security of the director loan and bank loans, especially repayment conditions and interest rates.
• Review cash flow projections and rental income from properties to assess the company’s ability to service debt.
• Confirm valuation and marketability of the fixed assets to evaluate liquidation value if needed.
• Assess potential tax liabilities and any contingent liabilities not reflected in the accounts.