Company Number: 14252946

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: HIGH
   The company's financials exhibit significant solvency risks, as evidenced by persistent negative net current assets and shareholders' funds. The liabilities substantially exceed current assets, indicating an inability to meet short-term obligations without external financing.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of £233,575 as of July 2024, worsening from £191,975 in prior years, highlighting increasing liquidity strain.
• Negative Shareholders' Funds: Equity is deeply negative at £41,680, indicating accumulated losses or undercapitalization that may undermine financial stability.
• Concentration of Control: Two individuals hold between 25-50% shares and voting rights each, which may pose governance and decision-making risks without broader oversight.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £191,895, which may provide collateral or potential future cash flow through rental or sale. The asset valuation has remained stable year-on-year.
• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance.
• Going Concern Statement: The director affirms the company’s ability to continue as a going concern, suggesting internal plans or arrangements to support operations despite financial challenges.

4. Due Diligence Notes:

• Nature of Creditors: Investigate the composition and terms of the £233,595 creditors due within one year to assess immediacy and severity of liquidity pressures.
• Cash Flow and Financing Arrangements: Review cash flow statements and any external financing or support from shareholders or related parties to understand liquidity management.
• Business Model and Revenue: Limited information on turnover or income streams; assess sustainability of the business model, particularly how the investment property is leveraged.
• Director and PSC Backgrounds: Evaluate the backgrounds and track record of the director and persons with significant control for any concerns related to governance or financial management.
• Future Plans for Solvency Improvement: Clarify any restructuring, capital injection, or asset sale plans intended to address negative equity and liquidity gaps.