Company Number: 13228359

Analysis Date: 2025-07-29 12:10 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities and negative shareholders' funds in the latest accounts, indicating solvency concerns. The large current liabilities and negative net current assets point to liquidity stress. The absence of employees and reliance on property assets without turnover data add to operational risks.

2. Key Concerns:

• Negative net assets (£-10,211) and shareholders' funds, worsening from previous years, signaling ongoing losses or accumulated deficits.
• Large current liabilities (£630,726) greatly exceeding current assets, resulting in negative working capital of £-154,330, which impairs ability to meet short-term obligations.
• Absence of turnover and profit & loss data limits visibility on operational cash flow and business sustainability; reliance on property assets without clear income generation raises concerns regarding business model viability.

3. Positive Indicators:

• The company is compliant with filing requirements and not overdue on accounts or confirmation statements, which suggests adherence to regulatory timelines.
• Fixed assets of £775,985 indicate significant investment in property or equipment, potentially providing collateral value.
• Change in controlling interest and director appointment is transparent and properly recorded.

4. Due Diligence Notes:

• Investigate detailed profit and loss accounts and cash flow statements to understand operational performance and revenue generation.
• Clarify nature and terms of the substantial current and long-term liabilities (£630,726 and £29,831 respectively) to assess repayment risks and creditor relationships.
• Assess whether fixed assets are encumbered or generating income and review any impairment risks or revaluation considerations.
• Review director background and any related-party transactions given control concentration and director changes in late 2023.
• Confirm absence of contingent liabilities or pending legal/regulatory actions that could worsen financial position.