Company Number: 15125589

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns, with net current liabilities exceeding £98,000 and minimal cash reserves. The equity base is very low relative to total liabilities, indicating a fragile financial position.

2. Key Concerns:

• Negative Working Capital: Net current assets are negative (~£98,000), meaning current liabilities vastly exceed current assets, which risks short-term liquidity and operational continuity.
• High Long-Term Liabilities: Finance lease obligations after one year total £251,225, almost equal to fixed assets value, suggesting high leverage and potential difficulty in servicing debt.
• Minimal Cash Reserves: Cash at bank is only £5,581, insufficient to cover immediate obligations, raising red flags on the company’s ability to meet short-term commitments without additional financing.

3. Positive Indicators:

• Tangible Fixed Assets: The company owns tangible fixed assets valued at £351,555 (land and buildings), which could provide collateral for financing.
• Current Filing Compliance: All statutory filings including accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Clear Ownership Structure: Two individuals hold significant control, with one director currently active, which may allow for streamlined decision-making.

4. Due Diligence Notes:

• Debt Structure and Terms: Investigate the nature, interest rates, and repayment schedules of the £251,225 finance lease obligations to assess refinancing risk and covenant compliance.
• Cash Flow Projections: Obtain detailed cash flow forecasts to determine how short-term liabilities will be met given the negative working capital and limited cash.
• Operational Model and Revenue: Clarify the company’s revenue model and turnover figures as these are not provided; understand how income supports debt servicing and operations.
• Director Changes: Review the impact of the recent director resignation on governance and operational stability.
• Valuation of Fixed Assets: Confirm the recoverability and market value of the tangible fixed assets, especially since they constitute the majority of asset value.