Company Number: 14214985

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities increasing to £1,019 as of April 2024. Its inability to cover current liabilities with current assets indicates a weak financial position and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: The company’s current liabilities exceed current assets by £1,019, worsening from a deficit of £273 in the prior year, signaling deteriorating liquidity and solvency.
• Director’s Advances/Loans: The director has extended advances totaling £2,108 to the company, indicating reliance on related-party funding to maintain operations, which may mask underlying cash flow issues.
• Non-Trading Status: Classified under SIC 74990 (Non-trading company) and 64209 (holding company activities), the company appears not to generate operational revenue, raising questions about sustainability and business viability.

3. Positive Indicators:

• Current Compliance Status: The company is active and up to date with all statutory filings, including accounts and confirmation statements, reducing regulatory compliance risk.
• Clear Ownership and Control: Single director and 75-100% ownership by Philip John Walter provides straightforward governance, simplifying accountability and decision-making processes.
• No Audit Requirement: Micro-entity status and exemption from audit reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate Source and Terms of Director Advances: Clarify whether the advances are loans, equity injections, or other forms of support, and assess implications for creditor priority and company solvency.
• Review Business Model and Activity: Confirm the nature of the company’s operations given its non-trading classification and holding company status, including plans for generating revenue or capital.
• Assess Cash Flow Projections and Funding Plans: Obtain management forecasts to understand how the company intends to improve liquidity and address net liabilities going forward.