Company Number: 13019479

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets (£-67,234) and a large long-term creditor balance (£225,035) exceeding total assets. The persistent decline in net assets over the last 2 years and negative working capital highlight financial stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Deficit: The company’s net liabilities position means it owes more than it owns, which is a critical red flag for solvency.
• High Long-Term Creditors: Creditors due after more than one year remain steady at £225,035, representing a substantial liability relative to the company’s asset base.
• Declining Liquidity: Although current liabilities slightly decreased, current assets remain very low (£8,788), resulting in a large negative net current assets figure (£-91,712), which implies difficulty in meeting short-term obligations.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds investment property valued at £249,855, which appears stable over multiple years and forms the bulk of asset value.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, no overdue filings or penalties noted, indicating good governance on statutory obligations.
• Going Concern Statement Supported by Directors: Directors commit to providing ongoing support, which may mitigate immediate risk of insolvency.

4. Due Diligence Notes:

• Investigate Nature and Terms of Long-Term Creditors: Understanding the creditor composition, repayment schedules, and covenant terms is critical to assess refinancing or restructuring risks.
• Review Cash Flow and Income Generation: Limited turnover and absence of detailed profit and loss data constrain liquidity assessment. Verify rental income streams and operating expenses to understand operational sustainability.
• Assess Directors’ Support and Financial Backing: Since going concern relies on directors’ support, confirm the extent and reliability of this backing and any contingent liabilities or guarantees.
• Consider Valuation and Liquidity of Investment Property: Although reported at a stable value, verify independent market valuation and marketability of the property asset to assess true recoverable amount.