Company Number: 13099941

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: MEDIUM
   The company holds significant fixed assets in investment property but has relatively low net assets and a sizeable non-current liability that nearly offsets the asset base. Current assets exceed current liabilities, indicating reasonable short-term liquidity. However, the high level of long-term creditors relative to net assets suggests some solvency risk, particularly if property values decline or cash flows are disrupted.

2. Key Concerns:

• High Non-current Liabilities: The company reports nearly £499k in creditors due after one year, closely matching the investment property value (£494.7k), resulting in thin net assets (£27.3k). This leverage could pose solvency risks if asset values deteriorate or refinancing is required.
• Limited Equity Base: Share capital is minimal (£100), and retained earnings are modest, limiting the company’s financial buffer against operational or market shocks.
• Lack of Profit & Loss Data: The profit and loss account has not been filed publicly, restricting insight into operational profitability and cash flow generation, which are critical to assessing ongoing financial viability.

3. Positive Indicators:

• Current Asset Coverage: Current assets (£34.8k) exceed current liabilities (£3.6k), indicating the company can meet short-term obligations without liquidity strain.
• Compliance with Filings: No overdue accounts or confirmation statements, suggesting compliance with statutory requirements and good governance practices.
• Established Ownership and Control: A single significant controller (Mr Ravi Rajendra Patel) with clear voting and appointment rights may allow for decisive management and strategic consistency.

4. Due Diligence Notes:

• Investigate the nature and terms of the non-current liabilities to understand repayment schedules, interest terms, and any covenants.
• Obtain and review profit and loss statements or management accounts to assess operational performance, cash flow, and profitability trends.
• Confirm market valuation of the investment property to assess asset-side risk and potential impairments.
• Review director backgrounds for any adverse records or disqualifications (none found here, but important for comprehensive risk assessment).
• Clarify the business model and revenue streams given the SIC code (other letting and operating of own or leased real estate) to understand sustainability and growth prospects.