Company Number: 14573865

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: MEDIUM

The company has net assets and positive shareholders' funds, but a significant net current liability position and substantial director-related creditors indicate potential liquidity strain. The company is new, with limited financial history, which increases uncertainty.

2. Key Concerns:

• Negative Net Current Assets (-£48,706): Current liabilities (£62,308) substantially exceed current assets (cash £13,602), indicating potential short-term liquidity constraints.
• Director Loans (£57,731): A large portion of current liabilities are loans from directors repayable on demand, highlighting reliance on director funding and potential risk if this is withdrawn.
• Limited Financial History and Scale: Incorporated in 2023 with only one set of unaudited accounts, limiting ability to assess operational stability and cash flow generation.

3. Positive Indicators:

• Net Assets and Shareholders’ Funds Positive (£13,031): The company has a small but positive equity base, mainly from retained earnings.
• Investment Property Asset (£60,885): Possession of investment property is a valuable fixed asset providing collateral value and potential income.
• No Overdue Filings: Compliance with filing requirements and no overdue accounts or confirmation statements reduce regulatory risk.

4. Due Diligence Notes:

• Review the nature and terms of director loans: Are these formalised? What is the plan for repayment or conversion?
• Assess cash flow forecasts and working capital management to determine if liquidity can improve or if reliance on director funding will continue.
• Investigate valuation and income generation capacity of the investment property.
• Confirm there are no undisclosed contingent liabilities or off-balance sheet risks.
• Monitor subsequent filings to establish operational progress and financial performance trends.