Company Number: 12430382

Analysis Date: 2025-07-29 14:55 UTC

1. Risk Rating: HIGH
   The company shows persistent net current liabilities and negative net assets, indicating a weak financial position. The large amounts owed to group undertakings suggest reliance on related party funding. Negative equity and working capital deficits raise significant solvency concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s shareholders’ funds are negative (£-515 as of 2024), reflecting accumulated losses and potential insolvency risk.
• Working Capital Deficit: Net current assets are negative (£-515 in 2024), indicating the company may struggle to meet short-term liabilities with available current assets.
• High Outstanding Amounts Owed to Group Undertakings: The creditor balance due to related parties has increased significantly to £1,375,000 (2024), which may indicate dependency on intra-group financing rather than sustainable cash generation.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, showing good regulatory compliance.
• No Director Disqualifications or Governance Issues: The sole director appears in good standing with no disqualifications or adverse records noted.
• Ongoing Business Activity: The company is active and classified under “Development of building projects,” a sector with potentially scalable opportunities.

4. Due Diligence Notes:

• Examine Related Party Transactions: Investigate the nature and terms of the amounts owed to group undertakings to assess dependency risks and repayment likelihood.
• Review Cash Flow and Profitability Trends: Detailed analysis of cash flow statements and profit & loss accounts (not provided) is necessary to understand operational sustainability.
• Assess Business Model Viability: Given the negative equity and working capital deficits, evaluate whether the company has a viable plan to restore profitability or if it relies on ongoing financial support from related parties.
• Confirm No Off-Balance Sheet Liabilities or Contingent Risks: Verify there are no undisclosed liabilities or legal issues that could exacerbate financial stress.