Company Number: 13668061

Analysis Date: 2025-07-29 13:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk evidenced by negative net assets and shareholders' funds, combined with current liabilities substantially exceeding current assets, indicating potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Equity Position: Net assets and shareholders' funds are negative (£-19,703 in 2023), reflecting accumulated losses or funding deficits that impair solvency.
• Working Capital Deficit: Current liabilities (£794,014) far exceed current assets (£63,024), resulting in negative net current assets (£-2,689) and suggesting liquidity strain.
• Large Financial Obligations: Significant long-term borrowings (£529,357 bank loans plus other creditors £264,657) relative to asset base raise concerns about debt servicing and refinancing risk.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £777,000, which is a substantial fixed asset that could provide collateral or be a source of future cash flow (via sale or rental income).
• No Overdue Filings: The company is compliant with statutory filing deadlines, indicating governance discipline in regulatory compliance.
• Going Concern Statement: The director has asserted a going concern basis, implying some confidence in operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans and other creditors to assess repayment schedules, interest rates, and covenants.
• Review cash flow forecasts and income generation capacity from investment properties or other operations to evaluate liquidity sustainability.
• Confirm if any related party transactions or director loans exist that might affect financial stability.
• Assess the business model viability and revenue streams given the lack of reported turnover or profit and the reliance on property holdings.
• Verify the director’s plans and any external support arrangements to address the negative equity and working capital deficit.