Company Number: 15075829

Analysis Date: 2025-07-20 15:00 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets (£-2.18m) and negative total net assets (£-140k), indicating solvency concerns. The current liabilities substantially exceed current assets, suggesting liquidity risk. Despite being part of a larger group, the standalone financial position raises red flags.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£2.22m) far exceed current assets (£36.9k), primarily due to intercompany or other short-term debts.
• Negative equity: Shareholders' funds stand at £-140k, indicating the company is technically insolvent on a net asset basis.
• No employees and limited operational history: Incorporated in 2023 with no employees and limited operational data, raising questions on business sustainability and cash flow generation.

3. Positive Indicators:

• Ownership and support: 100% owned by Pure Leisure Group Limited, a larger profitable group, which may provide financial support and mitigate immediate going concern risks.
• Tangible fixed assets: The company holds land assets valued at over £2m, which may provide collateral or value underpinning the business.
• Timely compliance: Accounts and confirmation statements are filed on time, showing regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, particularly any intercompany loans or trading payables, and the group’s commitment to financial support.
• Review the consolidated accounts of Pure Leisure Group Limited to assess group-level financial health and ability to support this subsidiary.
• Clarify operational business model, revenue generation plans, and future cash flow forecasts to understand sustainability.
• Confirm no contingent liabilities or litigation risks exist that might exacerbate financial stress.