Company Number: 15169840

Analysis Date: 2025-07-20 18:23 UTC

1. Risk Rating: HIGH

The company's financials reveal significant solvency and liquidity concerns given the substantial net current liabilities and negative net assets within a short operational period.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net liabilities of £5,749 despite being newly incorporated suggest initial capital may be insufficient or there could be early operational losses or financing structure issues.
• Large Long-term Debt vs. Limited Current Assets: Bank loans totaling £175,190 far exceed current assets of £3,028, creating a high leverage situation with potential difficulty servicing debt.
• Minimal Operational Activity and Cash Reserves: No employees and only £2,928 in cash indicate limited ongoing operations and a reliance on external funding to sustain business activities.

3. Positive Indicators:

• Active Status and Compliance: The company is active, with no overdue filings for accounts or confirmation statements, indicating adherence to statutory requirements.
• Asset Base in Investment Property: Fixed assets of £243,042 in investment property provide tangible backing which might support future cash flow or refinancing options.
• Clear Ownership and Control: Single shareholder/director with full control simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Verify the terms, interest rates, and repayment schedules of the £175,190 bank loans to assess refinancing risk and cash flow impact.
• Investigate the nature and valuation of investment property and whether it is generating or capable of generating income.
• Review business plans or forecasts for how the company intends to improve liquidity and profitability given the current deficit position.
• Confirm any related party transactions, especially loans from directors, and their impact on financial stability.
• Assess the director’s background for experience in managing similar financial structures and real estate management.