Company Number: 13821234

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to significant long-term liabilities relative to its net assets and current assets. The large creditor balance exceeding current assets and modest net equity suggest potential difficulties meeting financial obligations without refinancing or additional capital.

2. Key Concerns:

• High Long-Term Debt: Creditors falling due after more than one year total approximately £299k, vastly exceeding net assets of £13.6k, indicating heavy leverage.
• Negative Working Capital History: While net current assets improved slightly, current liabilities remain high relative to current assets (£8.2k vs. £298.9k), implying liquidity constraints.
• No Employees and Reliance on Director Loans: The company employs no staff and relies on director and related party loans totaling nearly £299k, which may indicate insufficient operational cash flow and dependency on insider funding.

3. Positive Indicators:

• Stable Fixed Asset Base: Tangible fixed assets remain consistent at £308k, suggesting the company holds significant real estate assets aligned with its SIC codes for property letting and trading.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, implying good regulatory compliance and governance practices.
• Rising Shareholders’ Funds: Shareholders’ funds increased from negative at inception to £13.6k, showing some retained profits or capital contributions improving equity.

4. Due Diligence Notes:

• Examine Loan Agreements: Terms of director and related party loans (interest rate, repayment conditions) and potential risks if refinancing is required.
• Assess Cash Flow Projections: Confirm the company’s ability to generate cash flow from property operations sufficient to service debt and meet liabilities.
• Review Asset Valuations and Market Conditions: Verify the carrying value of fixed assets and market conditions affecting property values and rental income.
• Investigate Absence of Employees: Determine operational model and whether outsourcing or management agreements are in place to sustain business activities.