Company Number: 14356848

Analysis Date: 2025-07-29 16:44 UTC

1. Risk Rating: HIGH
   The company shows a significant working capital deficit with current liabilities far exceeding current assets, indicating liquidity strain. The reliance on a substantial related party loan without formal repayment terms further elevates solvency risk.

2. Key Concerns:

• Large negative net current assets (£ -166,352 as of 30/09/24) suggest potential difficulties in meeting short-term obligations.
• The related party loan of approximately £175,721 with no formal repayment terms poses a risk to financial independence and could lead to cash flow constraints.
• Limited operational track record (incorporated in 2022) with minimal turnover data and no income statement disclosed restricts assessment of profitability and sustainability.

3. Positive Indicators:

• The company holds investment property valued at £173,646, representing a tangible asset base.
• The company remains compliant with filing deadlines for both accounts and confirmation statements, suggesting adherence to regulatory requirements.
• Shareholders' funds have increased from £375 to £7,294 year-on-year, indicating some retention of earnings or equity injection.

4. Due Diligence Notes:

• Investigate the nature, terms, and security of the related party loan from Yeadon IP Limited, including whether it is convertible or repayable on demand.
• Review cash flow forecasts and underlying rental income or revenue streams from investment properties to assess operational viability.
• Obtain the income statement and detailed financial performance data to evaluate profitability trends and expense management.
• Confirm that there are no undisclosed liabilities or contingent risks associated with the investment properties held.
• Verify director involvement and any potential conflicts of interest given the significant related party transactions.