Company Number: 13120565

Analysis Date: 2025-07-20 13:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets, large current liabilities exceeding current assets, and an overall net liability position. These financial indicators raise concerns about the company’s ability to meet its short- and long-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities consistently since incorporation, with net assets declining from -£28,782 in 2021 to -£43,877 in 2024, reflecting accumulated losses or funding gaps.
• Liquidity Deficit: Current liabilities exceed current assets by approximately £282k at the latest year-end, indicating a working capital shortfall and possible cash flow constraints.
• Heavy Long-Term Liabilities: Creditors falling due after more than one year amount to £281k, which alongside current liabilities signifies a highly leveraged balance sheet with significant debt burden relative to asset base.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain steady at £240k over the years, suggesting the company holds tangible assets which could provide some security or collateral value.
• Compliance with Filing Requirements: The company is up to date with its statutory filings and accounts, indicating adherence to regulatory obligations and good governance on reporting.
• Single Director with Relevant Occupation: The director’s occupation in property management aligns with the company’s SIC code and business activity, suggesting operational focus.

4. Due Diligence Notes:

• Investigate the nature and terms of both current and long-term liabilities to understand creditor exposure, repayment schedules, and any covenants.
• Review the company’s cash flow statements and management accounts (if available) to assess liquidity trends beyond year-end snapshots.
• Examine the cause of persistent negative equity – whether attributable to operating losses, revaluation deficits, or other equity drains.
• Confirm the business model sustainability given the absence of employees and limited current assets relative to liabilities.
• Assess director’s plans or capital injection potential to mitigate solvency concerns.
• Clarify if any related party transactions exist, as these could affect financial stability.