Company Number: NI677751

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with current liabilities vastly exceeding current assets, resulting in a negative net current asset position. Despite reported net assets, the heavy short-term obligations indicate a solvency risk.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £96,465 as of the latest accounts, suggesting inability to cover short-term debts with liquid assets.
• High Current Liabilities Relative to Cash: With only £3,274 in cash against nearly £100k in current liabilities, there is a clear liquidity strain.
• Minimal Share Capital and Equity: Share capital is nominal (£1), and although equity increased due to revaluation reserve, underlying operational profitability and cash flow generation appear weak or unreported.

3. Positive Indicators:

• Revaluation Reserve Increase: The company recorded a £20,000 increase in revaluation reserve, indicating an appreciation in fixed assets which improves reported net assets.
• Stable Director and No Overdue Filings: Company filings are up to date with no overdue accounts or confirmation statements, suggesting compliance with regulatory requirements.
• No Audit Requirement: The small company exemption from audit reduces administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly the bank loans (£72k) and other creditors, to assess repayment schedules and potential refinancing risk.
• Assess cash flow statements and profitability trends beyond balance sheet snapshots to evaluate operational sustainability.
• Review the rationale and valuation basis for the fixed asset revaluation to confirm its reliability and impact on solvency.