Company Number: 13269092

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns indicated by persistent negative shareholders' funds and net liabilities, despite asset growth. The level of long-term liabilities substantially exceeds current assets, raising questions about the company's ability to meet obligations without refinancing or capital injection.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company showed net liabilities of £26,389 as of March 2024, worsening from £4,546 the previous year, indicating ongoing losses or capital erosion.
• High Long-Term Borrowings: Loans and amounts owed to associates total £598,504 with an interest-free loan of £419,100 repayable on demand, suggesting potential liquidity risk if called upon unexpectedly.
• Limited Equity Base: Share capital is nominal (£200) relative to the size of liabilities and assets, which could hinder the company’s ability to raise additional capital or absorb losses.

3. Positive Indicators:

• Increasing Investment Property Assets: The company increased its investment property holdings to £514,267 as of March 2024, indicating growth in fixed assets.
• Current Assets Exceed Current Liabilities: Net current assets remain positive (£57,848), showing the company can cover short-term liabilities with its current assets.
• No Overdue Filings: Company accounts and confirmation statements are filed timely, reflecting compliance with regulatory requirements.

4. Due Diligence Notes:

• Examine Cash Flow and Profitability: The absence of a profit and loss statement limits insight into operational performance; reviewing underlying cash flows and income sources is essential.
• Assess Terms and Sustainability of Loans from Associates: The £419,100 interest-free, repayable on demand loan from a related party is a material risk; confirm the stability of this arrangement.
• Valuation and Liquidity of Investment Properties: Confirm the market valuations and liquidity of the investment properties pledged as security to understand collateral adequacy and refinancing risk.
• Director’s Financial Advances and Related Party Transactions: Review the nature and impact of director advances and related party dealings for potential conflicts or financial strain.