Company Number: 13138977

Analysis Date: 2025-07-20 17:17 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position that has deteriorated from -£49,714 to -£28,274, with substantial net current liabilities indicating liquidity stress. Its fixed assets are heavily leveraged by long-term liabilities, and working capital is negative and worsening, raising concerns about solvency and operational sustainability.

2. Key Concerns:

• Negative net assets and shareholders' funds indicate that liabilities exceed total assets, implying potential insolvency risk.
• Significant negative net current assets (-£158,812) highlight liquidity constraints; current liabilities exceed current assets by a large margin.
• Heavy long-term creditor obligations (£550,937) compared to asset base, suggesting high leverage and financial risk.

3. Positive Indicators:

• The company is current on filings with no overdue accounts or confirmation statements, indicating compliance with Companies House requirements.
• Fixed assets have remained stable (~£681k), suggesting retention of core operational assets.
• The business is small (micro-entity), which may limit complexity and overhead costs.

4. Due Diligence Notes:

• Review the nature and terms of the long-term liabilities of £550,937 to assess refinancing risk and creditor exposure.
• Evaluate cash flow statements (not provided) to understand operational cash generation and short-term liquidity management.
• Investigate whether the negative equity is due to accumulated losses or asset revaluations, and assess plans for recapitalization or restructuring.
• Confirm the operational status of the properties (leased, vacant, or under development) to judge revenue sustainability.
• Assess director backgrounds and any related party transactions given the small shareholder base and director involvement.