Company Number: 13139077

Analysis Date: 2025-07-29 16:59 UTC

1. Risk Rating: HIGH

Justification: The company shows a significant imbalance between current assets and current liabilities, with current liabilities far exceeding current assets. Additionally, the large amount of long-term creditors relative to net assets signals potential solvency concerns. Although the company holds fixed assets valued at £239,569, the equity base is very low (£4,624), and the liabilities are substantial (£273,230 long-term creditors), which heightens financial risk.

2. Key Concerns:

• Liquidity Issues: Current liabilities are £744 against current assets of £39,029, which superficially appears positive; however, the notes show a discrepancy—current liabilities are also reported as £273,230 primarily due after one year but with notable amounts due within one year. The financial statements show bank loans and other creditors amounting to £273,230 due after one year, but the notes also list current liabilities as £744 (mainly corporation tax). The company's cash is £38,726, which is a positive liquidity indicator, but the significant creditor balances raise concerns about the timing and nature of liabilities.
• Solvency Risk: The company’s net assets remain low (£4,624), and the long-term liabilities (£273,230) far exceed shareholders’ funds, indicating heavy gearing and potential insolvency risk if asset values or cash flows deteriorate.
• Lack of Operational Scale and Revenue Information: The company has no employees and has not disclosed turnover or profit and loss details. This absence of financial performance data limits assessment of operational sustainability and cash generation capacity.

3. Positive Indicators:

• Asset Base: The company holds tangible fixed assets valued at £239,569, which suggests a substantive asset backing, presumably real estate given the SIC codes.
• Compliance and Filing: The company is active, up to date with filings (accounts and confirmation statement not overdue), and is not in liquidation or administration.
• Cash Reserves: The reported cash balance (£38,726) is reasonable relative to current liabilities, indicating some liquidity to cover short-term obligations.

4. Due Diligence Notes:

• Clarify the nature and maturity profile of the company's liabilities, specifically the classification between current and long-term creditors, to better assess liquidity risk.
• Obtain profit and loss figures or turnover data to evaluate operational cash flow and profitability, which are currently unavailable.
• Confirm valuation methodology for fixed assets and whether these are readily realizable in stress scenarios.
• Investigate the terms and covenants of the bank loans and other creditors to understand refinancing risks.
• Review director’s plans or disclosures regarding debt management and future funding.