Company Number: 13147258

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: MEDIUM
   The company holds significant fixed assets (£520,000) but has substantial current liabilities (£303,742) exceeding its current assets (£1,964), resulting in a large negative net current asset position (-£301,778). Although the net assets remain positive (£30,547), the liquidity position raises concerns about the company's ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Risk: Current liabilities far exceed current assets by a significant margin, indicating potential cash flow or short-term payment difficulties.
• High Short-Term Debt: Creditors due within one year total over £300,000, which may strain operational cash flows, especially given no reported employees or operational scale.
• Limited Operational Scale: The company has no employees, minimal current assets, and is classified as a micro-entity, which may limit operational resilience and growth prospects.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds considerable fixed assets valued consistently at £520,000 over recent years, suggesting tangible underlying value.
• Positive Net Assets: Despite liquidity concerns, net assets have increased from £16,406 in 2022 to £30,547 in 2023, indicating some improvement in overall equity.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Verify the nature and liquidity of fixed assets and whether they can be readily used to cover liabilities if needed.
• Investigate the composition and terms of current liabilities (e.g., creditors, loans) and any planned repayment schedules.
• Assess cash flow forecasts and operational plans given the absence of employees and micro-entity status to understand how short-term obligations will be met.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Review director’s plans and strategy for improving liquidity and operational scaling.