Company Number: 15169427

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities of £117,226 and overall net liabilities of £4,036. The substantial long-term borrowings relative to asset values and negative shareholders’ funds indicate elevated financial risk.

2. Key Concerns:

• Negative Net Current Assets: The current liabilities of £132,900 far exceed current assets of £15,674, suggesting potential cash flow difficulties in meeting short-term obligations.
• Overall Negative Equity: Shareholders’ funds stand at negative £4,136, which signals that the company’s liabilities surpass its assets, a red flag for solvency.
• High Borrowing Levels: Non-current liabilities (bank loans) of £252,194 secured against investment property indicate significant leverage, which may increase financial stress if rental income or property values decline.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £365,384, which provides a tangible, relatively stable asset base.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating regulatory compliance and good governance practices at this early stage.
• Single Director with Full Control: Clear ownership and control by one individual can facilitate swift decision-making.

4. Due Diligence Notes:

• Verify the terms, interest rates, and repayment schedules of the bank loans to assess refinancing risk and debt servicing capacity.
• Review rental income streams or other revenue generation from the investment property to evaluate operational cash flow sustainability.
• Investigate the company’s business plan regarding property acquisition, management, and any planned capital injections to address current negative equity.
• Confirm related party transactions or loans, given the director’s full control and significant borrowings.
• Assess the valuation methodology and market comparability of the investment property figure.