Company Number: 14436816

Analysis Date: 2025-07-29 18:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns given its negative net assets and high long-term liabilities exceeding fixed assets. Its financial structure suggests vulnerability in meeting obligations without additional capital or refinancing.

2. Key Concerns:

• Negative Net Assets (£-15,747): The company’s liabilities exceed its assets, indicating insolvency on a balance sheet basis.
• High Long-Term Creditors (£1,019,964): Substantial non-current liabilities relative to fixed assets suggest heavy debt burden or financing risk.
• Very Low Current Assets (£4,059) with minimal working capital (£3,819): Limited liquidity to cover short-term liabilities, risking cash flow problems.

3. Positive Indicators:

• Substantial Fixed Assets (£1,000,398): The company holds significant real estate assets, which may provide collateral value or potential to improve financial stability.
• No Overdue Filings: Compliance with filing deadlines reflects adherence to regulatory requirements and governance discipline.
• Single Director and PSCs Clearly Identified: Ownership and management transparency reduces governance risk.

4. Due Diligence Notes:

• Clarify Nature and Terms of Long-Term Creditors: Investigate creditor identity, interest rates, repayment schedules, and covenants to assess refinancing or default risk.
• Evaluate Cash Flow Projections and Funding Plans: Determine how the company intends to service debt and cover operational costs given limited current assets.
• Review Asset Valuations and Realisability: Confirm that fixed asset valuations reflect fair market value and assess ease of liquidation if required.
• Examine Director’s Business Plan: Understand management’s strategy to return to profitability or recapitalise the business.
• Confirm Absence of Director Disqualifications or Pending Regulatory Actions: No red flags were observed but verification is prudent.