Company Number: 13261385

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net liabilities of £203,884 as of the last financial year end. Its current liabilities vastly exceed current assets, resulting in a negative working capital position of approximately £149k. Furthermore, convertible loans with high interest rates (50% per annum before conversion) indicate financial distress and reliance on expensive financing.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have expanded sharply from about £10,600 in 2022 to over £203,000 in 2023, signaling sustained losses or increased debt burden.
• Liquidity Mismatch: Current liabilities (£219k) exceed current assets (£70k) by a large margin, indicating potential cash flow difficulties in meeting short-term obligations. Cash on hand is low (£5,312), increasing liquidity risk.
• High-Interest Convertible Loans: The presence of convertible loan notes bearing 50% interest per annum (converted post year-end) suggests reliance on costly financing, which may strain future cash flows and operational stability.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Active Website and Business Presence: The company maintains an active website and telephone contacts, indicating ongoing operational activity.
• Established Management: The directors have been in place since incorporation, and the company has a clear ownership structure with three significant controllers sharing voting rights and control.

4. Due Diligence Notes:

• Investigate the nature and terms of the convertible loan notes, especially the post-year-end conversion and the 50% interest rate’s impact on financial sustainability.
• Review the company’s cash flow forecasts and operational plans to address the large negative working capital and net liabilities.
• Examine subsidiary performance (Planning Gain Experts (Hoddesdon) Ltd) and group structure for potential support or risk concentration.
• Confirm the accuracy and completeness of debtor balances (£64,742) to ensure collectability and assess credit risk.
• Assess the directors’ strategy for returning the company to profitability and solvency, including any planned capital injections or restructuring.