Company Number: 13916078

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and a large amount of short-term creditors relative to current assets, indicating potential liquidity stress and challenges meeting short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£1,537,280) far exceed current assets (£372,435), resulting in a net current liability of about £1.16 million, suggesting cash flow difficulties to cover immediate debts.
• Reliance on Bank Loan: A new bank loan of £350,000 appears on the balance sheet, which adds to financial risk given the company’s relatively weak working capital position.
• Lack of Operating Activity and Staff: The company reports no employees and minimal operational information, raising questions about sustainable revenue generation and operational stability.

3. Positive Indicators:

• Growing Fixed Assets: Investment property value increased substantially from £600,000 to £1,300,744, indicating asset growth and potential collateral.
• Equity Position Stable: Shareholders’ funds have increased slightly to £103,757, showing some retained earnings and capital buffer despite losses.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date, with no overdue filings or regulatory concerns noted.

4. Due Diligence Notes:

• Verify cash flow projections and working capital management plans to address large short-term liabilities.
• Review terms and security attached to the bank loan and other creditors to assess refinancing risks.
• Investigate the nature and valuation method of investment property additions and their liquidity.
• Understand the company’s business model and revenue streams given no employees and limited operational data.
• Assess directors' plans for addressing the going concern qualification and any contingent liabilities not disclosed.