Company Number: 13515129

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency concerns, with net current liabilities worsening to -£1.58 million and net liabilities at -£288k as at July 2024. The negative shareholders' funds and large secured bank loans compared to current assets indicate a high risk of financial distress.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (£1.76m) vastly exceed current assets (£177k), increasing liquidity risk and potential inability to meet short-term obligations.
• Net Liabilities and Negative Equity: Net assets are negative (-£288k), reflecting accumulated losses and raising doubts about long-term financial stability.
• Heavy Reliance on Secured Debt: Over £2 million of secured bank loans fall due beyond one year, indicating high leverage which may impair operational flexibility.

3. Positive Indicators:

• Increasing Investment Property Asset Base: Investment property increased by ~£648k to £3.36 million, which may support future earnings or refinancing capacity.
• No Overdue Filings: The company has complied with statutory filing deadlines for both accounts and confirmation statements, indicating regulatory compliance.
• Experienced Director and Consistent Control: The director, Mr. Sam Low, has been in place since incorporation and owns a controlling interest, suggesting stable governance.

4. Due Diligence Notes:

• Investigate the terms and covenants of the bank loans, including repayment schedules and interest obligations.
• Review cash flow forecasts and management plans addressing the significant working capital deficit.
• Assess the valuation and liquidity of the investment property assets and whether they can be monetized if necessary.
• Verify the absence of contingent liabilities or off-balance-sheet obligations that could exacerbate solvency risk.
• Confirm no director disqualifications or legal issues beyond what is disclosed.