Company Number: 14027489

Analysis Date: 2025-07-29 14:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant net liabilities with negative shareholders’ funds and a substantial imbalance between current liabilities and current assets, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £8,479 at the latest year-end, showing that total liabilities exceed total assets, which is a solvency concern.
• High Long-term and Short-term Liabilities: The company carries £465,301 in creditors due after more than one year and an unusual discrepancy in current liabilities reporting (significant reduction from prior year), raising questions about debt structure and repayment capacity.
• Minimal Liquidity: Cash and current assets are very low (£5,378) compared to current liabilities (£256), though the reported current liabilities have drastically reduced from the prior year figure of £326,672 (which may be a reporting or classification anomaly). This limited liquidity heightens short-term cash flow risk.

3. Positive Indicators:

• Fixed Asset Base: The company holds tangible fixed assets valued at £451,700 (land and property), which is a considerable asset base that could potentially be leveraged or sold to improve financial position.
• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating regulatory compliance and good governance in statutory reporting.
• Stable Directorship and Ownership: Both directors are long-standing since incorporation and hold equal significant control, suggesting stable management without changes that might disrupt operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors due after more than one year, including the directors’ loan account and other creditors, to assess repayment obligations and any refinancing risks.
• Clarify the current liabilities figure for the latest year, which appears unusually low compared to prior year, to confirm accuracy and understand any reclassification or settlement events.
• Review cash flow statements or management accounts (not provided) to assess operational cash generation and liquidity trends, given the minimal cash holdings.
• Examine any contingent liabilities, related party transactions, or off-balance sheet obligations that could further impact financial stability.
• Confirm the valuation basis and marketability of the fixed assets to evaluate their potential to address solvency issues.