Company Number: 14120044

Analysis Date: 2025-07-29 18:29 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk as evidenced by net liabilities of £258,560 at the 2024 year-end, driven by creditors exceeding fixed assets by a substantial margin. The current assets are negligible (£298) compared to current liabilities (£2,029,328), indicating very poor liquidity and inability to meet short-term obligations.

2. Key Concerns:

• Solvency and Negative Net Assets: The balance sheet shows net liabilities rather than net assets, reflecting a weak financial position and potential insolvency.
• Liquidity Shortfall: Current assets barely cover current liabilities, suggesting cash flow constraints and limited resources to fund ongoing operations or debt repayments.
• High Long-Term Creditors: Creditors due after more than one year total over £2 million, which is significant relative to fixed assets and shareholders’ funds, pointing to heavy reliance on debt financing.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both annual accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• Established Directors and PSCs: Two directors with no apparent disqualifications and transparent significant control structure help ensure accountability.
• Fixed Asset Base: The company holds substantial fixed assets valued at approximately £1.77 million, which may support operational continuity or collateral for financing.

4. Due Diligence Notes:

• Nature and Terms of Creditors: Investigate the composition of the £2 million+ creditors due after more than one year—are these loans, trade payables, or other liabilities? Assess repayment schedules and covenants.
• Cash Flow and Profitability: Review detailed cash flow statements and profit and loss accounts to understand cash generation ability and operational performance since incorporation in 2022.
• Business Model and Project Pipeline: As a developer of building projects, examine ongoing projects, contracts, and revenue visibility to evaluate operational sustainability.
• Directors’ Plans and Support: Clarify if shareholders or directors plan to inject additional capital or restructure debt to address negative equity and liquidity constraints.

Executive Summary:
WEDGEMORE ST CHARLES SQUARE LTD faces a high risk profile due to its negative net asset position and severe liquidity shortfall at the latest reporting date. While regulatory compliance is maintained and the company controls significant fixed assets, the heavy creditor burden and minimal current assets raise substantial concerns about solvency and operational viability. Further investigation into creditor terms, cash flow dynamics, and business prospects is essential to fully assess investment risk.