Company Number: 12884973

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by substantial current liabilities far exceeding current assets, resulting in negative net working capital. Despite positive net assets due to fixed assets, the large long-term liabilities and persistent negative net current assets suggest financial strain.

2. Key Concerns:

• Negative Net Current Assets: The company has a net current liability of approximately £260k as of 31 March 2024, indicating potential short-term liquidity issues.
• High Long-Term Creditors: Creditors falling due after more than one year stand at £750,946, which is exceptionally high relative to shareholders’ funds of £25,975, indicating leveraged balance sheet and reliance on debt.
• No Employees and No Audit: The company has no employees and has not undergone an audit, limiting transparency on operational viability and financial controls, raising concerns about sustainability and oversight.

3. Positive Indicators:

• Growth in Net Assets: Net assets increased from £5,947 in 2023 to £25,975 in 2024, showing some improvement in equity position.
• Fixed Assets Stability: Fixed assets remain stable at £1,037,124, suggesting tangible asset backing to some extent.
• Timely Filings: The company has filed accounts and confirmation statements on time with no overdue filings, indicating compliance with statutory filing obligations.

4. Due Diligence Notes:

• Examine Nature and Terms of Creditors: Investigate the composition and repayment terms of the large long-term creditors to assess refinancing or covenant risks.
• Cash Flow Analysis: Review cash flow statements or bank statements (not provided) to understand liquidity management and operational cash generation.
• Business Model and Revenue Streams: Clarify how the company generates revenue with no employees and whether the fixed assets are generating income or are underutilized.
• Director and Shareholder Background: Given the significant liabilities and minimal equity, assess the financial support or guarantees from the controlling individuals listed as significant controllers.
• Future Viability: Investigate any plans for capital injection, debt restructuring, or asset sales to improve liquidity and solvency.