Company Number: 13125824

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and shareholders' funds worsening over the last financial year. The absence of cash at the year-end further exacerbates liquidity risk.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £89,035 as of 31 January 2024, indicating an inability to meet short-term obligations from current assets.
• Negative Shareholders' Funds: The equity position is significantly negative at approximately £38,310, reflecting accumulated losses or deficits eroding the company's net worth.
• Zero Cash Reserves: Cash at bank dropped from £3 in the prior year to zero, raising concerns about immediate liquidity and operational funding.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £50,725, which could provide collateral or potential liquidity through sale or refinancing.
• Compliance with Filings: Accounts and confirmation statements are filed on time with no overdue filings, indicating regulatory compliance and good governance on reporting obligations.
• Stable Director and PSC Structure: Directors and persons with significant control are clearly identified, with no apparent disqualifications or governance red flags.

4. Due Diligence Notes:

• Confirm the nature and marketability of the investment property asset, including whether it is encumbered by any charges or liens.
• Investigate the reasons for the persistent negative working capital and shareholders’ funds, including review of underlying liabilities and any related party debts.
• Assess operational cash flows and funding arrangements to understand how the company is managing its liquidity given zero cash at year-end.
• Verify any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Review director and shareholder plans to address the deteriorating financial position and whether additional capital injections or restructuring are anticipated.