Company Number: 13142211

Analysis Date: 2025-07-29 16:26 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and shareholders’ funds over multiple years, indicating accumulated losses and weak equity base. Current liabilities consistently exceed current assets, raising concerns about liquidity and short-term solvency. The presence of related party long-term creditors further complicates financial stability.

2. Key Concerns:

• Negative net assets of £1,718 as of January 2023, worsening from prior years, suggesting ongoing losses and erosion of equity.
• Net current assets positive in 2023 (£282) but historically negative, with current liabilities exceeding current assets in prior years, indicating potential liquidity strains.
• Significant related party debt (£2,000) classified as creditors falling due after one year, which may pose refinancing or repayment risk depending on terms.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, reflecting compliance with statutory requirements and regulatory deadlines.
• The director has been in place since incorporation with no reported disqualifications or governance issues.
• The company benefits from a controlling shareholder (Pehlwan Malik Holdings Limited) with full voting rights, providing potential financial support or strategic backing.

4. Due Diligence Notes:

• Investigate the nature and terms of the £2,000 related party loan including repayment schedule, interest, and any covenants.
• Review the company’s cash flow forecasts and working capital management plans to assess ability to meet short-term obligations.
• Ascertain the company’s revenue trends and future contracts given limited turnover data, to evaluate operational sustainability and path to profitability.
• Confirm no contingent liabilities or off-balance sheet obligations that could exacerbate financial risk.
• Evaluate the business model and market positioning in the car rental and passenger land transport sector for competitive risks.