Company Number: 13722174

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: HIGH
   The company exhibits a net liabilities position with shareholders’ funds negative and current liabilities substantially exceeding current assets. The fixed asset base is heavily leveraged with long-term creditors, indicating solvency risk.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities increased from -£7,400 to -£11,867 as of March 2024, signaling erosion of equity capital and potential solvency issues.
• High Long-Term Liabilities: Creditors falling due after more than one year total approximately £380k against fixed assets of £368k, indicating reliance on debt financing that exceeds tangible asset backing.
• Minimal Liquidity: Current assets (cash and equivalents) are extremely low (£998), while current liabilities are significant, raising concerns on the company’s ability to meet short-term obligations without additional funding.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance and corporate governance practices.
• Stable Fixed Asset Base: The fixed assets have remained constant, suggesting no impairment or disposals, which may represent stable underlying real estate holdings.
• Experienced Directors: Both directors are longstanding and resident at the company address, indicating committed management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess refinancing risk and creditor arrangements.
• Review cash flow projections and any external funding arrangements to understand short-term liquidity management.
• Examine the valuation and marketability of fixed assets to determine recoverability and collateral value.
• Evaluate the business model sustainability given the negative equity and whether operational cash flows can support ongoing obligations.
• Confirm any contingent liabilities or off-balance sheet obligations not apparent in the accounts.