Company Number: 13132389

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net liabilities, with negative shareholders' funds worsening from -£31,494 in 2023 to -£16,906 in 2024. The long-term liabilities exceed £1.38 million, heavily outweighing current assets (~£11,266) and cash reserves (~£4,343), indicating potential solvency and liquidity challenges.

2. Key Concerns:

• Solvency Risk: The net liabilities position and substantial long-term loans raise concerns about the company's ability to meet debt obligations without additional capital injection or asset disposals.
• Liquidity Constraints: Current assets and cash balances are minimal relative to current and long-term liabilities, which could impair short-term operational funding and creditor payments.
• Dependence on Loans: Large loans (M4G1C loans totaling over £1.18 million) and director or related party loan arrangements suggest reliance on external financing which may not be sustainable long term.

3. Positive Indicators:

• Asset Base: The company holds tangible fixed assets valued at approximately £1.36 million, primarily land and buildings, which could provide collateral or be monetized if necessary.
• No Overdue Filings: The company is current with statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Stable Management: Directors have been in place since incorporation with no disqualifications noted, suggesting governance stability.

4. Due Diligence Notes:

• Verify terms, interest rates, and repayment schedules of the M4G1C loans and other creditor arrangements to assess refinancing risks.
• Investigate the company's cash flow projections and operational profitability to understand if it can service debts and improve its financial position.
• Review the nature and marketability of the tangible fixed assets, particularly the land and buildings, to evaluate their liquidity value.
• Confirm the related party transactions, including director loans, to assess potential conflicts of interest or financial support.
• Assess the company's business model sustainability given current financial stresses and whether any restructuring or additional capital injections are planned.