Company Number: 13888066

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH

   Justification: The company shows negative net assets and shareholders’ funds for multiple years, indicating insolvency on a balance sheet basis. There is a significant level of long-term liabilities (£401,544) compared to limited cash availability (£13,155), pointing to liquidity pressures. The company is also very young (incorporated in 2022), which increases operational risk given limited financial history.

2. Key Concerns:

   • Solvency risk: Negative net assets (£-3,994 as of 2024) and shareholders’ funds suggest the company is technically insolvent, relying on creditor funding.
   • Liquidity concerns: Cash on hand is minimal (£13,155) relative to current liabilities due, raising questions about short-term cash flow sufficiency.
   • High debt levels: Substantial bank loans and other creditors falling due after one year (£401,544 in 2024) may strain financial flexibility, especially without clear revenue or profitability data.

3. Positive Indicators:

   • Asset growth: Tangible fixed assets (land and buildings) increased from £254,315 to £384,395 year-on-year, indicating investment in potentially appreciating assets.
   • No overdue filings: Both accounts and confirmation statements are up to date, showing regulatory compliance.
   • Single controlling shareholder: Clear ownership structure with a single PSC holding 75-100% shares and voting rights, which can facilitate decision-making.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term liabilities, specifically the bank loan and other creditors, to assess repayment schedules and covenants.
   • Review the company’s revenue streams and profitability metrics (not provided here) to evaluate operational sustainability.
   • Confirm the valuation and liquidity of the tangible fixed assets and whether these can be leveraged or sold if needed.
   • Understand the business plan since incorporation and any plans for capital injection or debt restructuring to improve solvency.
   • Verify that there are no director disqualifications or governance issues beyond what is stated.