Company Number: 13232946

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: HIGH
   The company demonstrates significant liquidity risk, evidenced by persistent and growing net current liabilities exceeding £1.6 million as of the latest financial year, coupled with cash reserves of only £87,084. The minimal shareholders’ funds (£3,053) and reliance on substantial fixed asset investments raise concerns about the company’s capacity to meet short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Negative net current assets (£-1,665,473) indicate an inability to cover current liabilities with available current assets, signaling potential cash flow strain.
• Small Cash Reserves vs High Current Liabilities: Cash decreased markedly from £370,746 in the prior year to £87,084, while current liabilities increased, intensifying short-term solvency pressures.
• Lack of Audited Financials and Profit & Loss Data: The accounts are unaudited and abridged, with no income statement provided, limiting transparency on operational performance and profitability.

3. Positive Indicators:

• Growth in Fixed Asset Investments: Investment assets increased from £1.17 million to £1.67 million, suggesting active deployment of capital potentially supporting future earnings.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good compliance with statutory filing requirements.
• Established Management Team: Four directors with longstanding appointments since incorporation may provide continuity and experience.

4. Due Diligence Notes:

• Obtain full audited financial statements or management accounts to assess profitability, cash flows, and the nature of fixed asset investments.
• Investigate the composition and liquidity of the fixed asset investments since these form the bulk of total assets.
• Review the terms and timing of current liabilities to understand repayment schedules and any potential refinancing risks.
• Clarify director loan arrangements and other related party transactions for contingent liabilities or financial support.
• Assess the business model and revenue generation given the absence of employees and limited operational disclosure.