Company Number: 14798763

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks with net current liabilities of -£188,414 and negative shareholders’ funds of -£5,490 shortly after incorporation. The high current liabilities relative to minimal cash reserves indicate liquidity challenges. The presence of substantial director loan accounts and bank loans further compound financial leverage concerns.

2. Key Concerns:

• Negative working capital: Current liabilities (£192,021) exceed current assets (£3,607) by a large margin, indicating potential short-term liquidity issues.
• Negative equity position: Shareholders’ funds are negative (£-5,490), reflecting accumulated losses or financial strain that may impact the company’s ability to secure external financing.
• Dependence on director loans and bank borrowing: The majority of current liabilities relate to a director loan account (£191,421) and long-term creditors include bank loans (£81,600), suggesting reliance on related party funding and debt which may not be sustainable without positive cash flows.

3. Positive Indicators:

• Asset base in land and buildings: Fixed assets of £264,527 represent a tangible asset base, which supports some collateral value.
• No overdue filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory discipline.
• Clear ownership and control: Directors and persons of significant control are well documented, with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate the terms, conditions, and repayment schedule of the director loan and bank loans to assess refinancing risk and creditor pressure.
• Review the company’s business plan and projected cash flows to understand how it plans to overcome current liquidity deficits and move to profitability.
• Confirm the nature and market value of the land and buildings held as fixed assets to evaluate their realizable value in a stress scenario.
• Assess if there are any contingent liabilities or off-balance sheet risks not disclosed in the filed accounts.
• Verify if there are any related party transactions or potential conflicts of interest given the concentration of shareholding and directorship within the Ghiata family.