Company Number: 13247776

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH

Justification: The company shows persistent negative net assets and shareholders’ funds, significant current liabilities exceeding current assets, and heavy reliance on director loans and bank loans. These indicators suggest solvency and liquidity risks that warrant a high-risk classification.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities stand at £22,277 as of the latest accounts, reflecting an erosion of equity and potential solvency concerns.
• Poor Liquidity Position: Current liabilities (£134,941 short term plus £332,977 long term) vastly exceed current assets (-£2,538 in 2024), yielding a negative working capital position and indicating potential cash flow constraints.
• Dependence on Related Party Financing: Large director loan accounts (£134,941) and bank loans (£332,977) constitute significant liabilities, raising concerns about financial stability and the cost of servicing debt.

3. Positive Indicators:

• Stable Investment Property Asset: The company holds investment property valued consistently at £447,995, representing a tangible underlying asset base.
• Compliance and Filing: No overdue filings or confirmation statements; accounts are up to date and prepared under appropriate accounting standards.
• Experienced Directors: Both directors have been in place since incorporation and reside at the registered address, which may indicate stable management continuity.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedules of the director loans and bank loans to assess financial risk.
• Obtain turnover and profitability data not disclosed here to better assess operational sustainability.
• Review cash flow forecasts and any contingent liabilities or off-balance sheet obligations.
• Confirm the market valuation and liquidity of the investment property assets.
• Assess any potential related party transactions and governance controls given the reliance on director loans.