Company Number: 13595389

Analysis Date: 2025-07-20 14:57 UTC

1. Risk Rating: HIGH
   The company shows a significant liquidity shortfall with current liabilities vastly exceeding current assets by over £200k. Despite positive net assets primarily due to investment property, the large current liabilities and negative net working capital indicate solvency risks.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (~£368k) exceed current assets (~£14k) by a large margin, reflecting negative working capital and potential cash flow stress.
• High Long-Term Debt: Substantial bank loans (~£369k) relative to net assets (£38k) raise concerns about leverage and debt servicing capacity.
• Lack of Operational Revenue/Employees: No employees and minimal debtors suggest limited operational activity, raising questions about business sustainability and income generation to cover liabilities.

3. Positive Indicators:

• Investment Property Asset: Fixed assets valued at £621k provide a strong asset base which could be leveraged or sold to address liabilities.
• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Increasing Shareholders’ Funds: Net assets improved from negative in 2021 to positive £38k in 2024, showing some equity growth.

4. Due Diligence Notes:

• Verify the nature and terms of bank loans, including repayment schedules and covenants.
• Investigate income streams or cash flow sources given lack of employees and minimal debtors.
• Assess valuation and liquidity of investment property to determine if it can cover liabilities if needed.
• Review director background and governance practices, given limited operational data.
• Clarify whether the company has contingent liabilities or off-balance-sheet obligations.