Company Number: 14383567

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company shows consistently negative net current assets and shareholders’ funds, indicating a working capital deficit and accumulated losses. Current liabilities exceed current assets, implying potential solvency and liquidity risks.

2. Key Concerns:

• Negative net current assets (£-94,619 in FY 2024) showing inability to cover short-term obligations with current assets.
• Accumulated losses reflected in negative shareholders’ funds (£-94,620), suggesting continuing financial distress since inception.
• Significant amounts owed to group undertakings (£2.23m), which may indicate dependency on related party funding and potential cash flow risk if support is withdrawn.

3. Positive Indicators:

• The company is up to date with statutory filings and accounts, indicating regulatory compliance and good governance.
• Directors have confirmed a going concern basis for the accounts, implying confidence in continuing operations.
• The business operates in property development and trading of own real estate, sectors which can generate substantial asset value if managed prudently.

4. Due Diligence Notes:

• Investigate the nature and terms of the large intercompany balances to assess risk of repayment and impact on liquidity.
• Review cash flow forecasts and management plans to address working capital deficits and path to profitability.
• Assess the underlying value and liquidity of stocks (property assets) to determine recoverability and realistic asset base.
• Consider background and financial strength of parent company and ultimate controlling party for ongoing support.
• Examine any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.