Company Number: 13265490

Analysis Date: 2025-07-20 18:09 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net current asset position (-£3.24 million) and current liabilities materially exceed current assets, indicating liquidity strain. Despite positive shareholders’ funds (£98,154), the working capital deficit and high levels of short-term creditors raise concerns about solvency and cash flow management.

2. Key Concerns:

• Liquidity risk: Current liabilities (£12.96 million) significantly exceed current assets (debtor balances of £9.72 million), resulting in negative net current assets and potential difficulty meeting short-term obligations.
• Concentration of debtors: The vast majority of debtors (£9.64 million) are amounts owed by group undertakings, indicating reliance on intra-group funding which may not be readily convertible to cash.
• Lack of operational activity: The company reports zero employees and no turnover disclosed. The absence of operational revenue and dependence on investments in subsidiaries suggests the company is a holding or financing entity rather than a trading business, potentially limiting its financial sustainability.

3. Positive Indicators:

• No overdue filings or compliance issues: The company’s accounts and confirmation statement are filed on time, indicating regulatory compliance and governance discipline.
• Substantial share capital: £100,000 share capital provides a modest equity buffer, although small relative to liabilities.
• Investment assets: Fixed asset investments valued at £3.34 million, secured by a fixed and floating charge, provide some asset backing to liabilities.

4. Due Diligence Notes:

• Investigate the nature and collectability of intercompany debtors to assess liquidity and risk of impairment.
• Review group structure and related party transactions to understand financial flows and dependency on group support.
• Examine underlying investment assets and the secured loan facility to determine collateral value and recovery prospects.
• Confirm absence of operational revenue and assess the company’s role within the group, as this impacts business sustainability.
• Verify the absence of contingent liabilities or off-balance sheet exposures not disclosed in the accounts.