Company Number: 13679628

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset position with significant long-term liabilities and persistent negative working capital. However, it is not currently overdue on filings and has recent positive revaluation gains on its investment property, indicating some asset value growth.

2. Key Concerns:

• Liquidity Risk: The company has consistent negative net current assets (£-68k in 2024) with current liabilities (~£79k) far exceeding current assets (~£11k), posing potential short-term cash flow challenges.
• Leverage and Solvency: Long-term creditors amount to £145,911, resulting in a highly leveraged balance sheet relative to net assets (£36,286), which may constrain financial flexibility.
• Profitability and Reserves: The company moved from a negative reserve position (£-821 in 2023) to a small positive reserve (£36,284 in 2024) primarily due to revaluation adjustments rather than operational profit, indicating limited earnings generation from core activities.

3. Positive Indicators:

• Asset Revaluation Gains: Investment property increased in value by £36,190 in the last year, improving total asset value and equity.
• Compliance: The company is up to date with all statutory filings (accounts and confirmation statements), mitigating regulatory risk.
• Stable Management: Directors and persons with significant control are consistent since incorporation with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the long-term bank loans (£145,911) to understand refinancing risk and covenant obligations.
• Assess the cash flow statement and profit and loss account (not included in the filing) to verify operational profitability and cash generation capacity beyond revaluation impacts.
• Confirm the valuation methodology and market comparables for the investment property to validate the fair value gains and potential volatility in asset values.
• Investigate the nature of current liabilities, especially "other creditors" (£74,239), to determine if any are related party or overdue amounts that may impact liquidity.