Company Number: 14816951

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant current liabilities exceeding current assets, indicating solvency concerns. The presence of a large related party loan repayable on demand with interest further amplifies liquidity risk.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities of £38,220 suggest that liabilities exceed total assets, a clear solvency red flag.
• Working Capital Deficit: Net current liabilities of approximately £1.09 million imply potential liquidity constraints to meet short-term obligations.
• Related Party Loan Exposure: Over £1.02 million owed to a related company controlled by directors, repayable on demand with 5% interest, poses refinancing and cash flow risk if repayment is demanded unexpectedly.

3. Positive Indicators:

• Substantial Investment Property Asset: Fixed assets largely comprise an investment property valued at approximately £1.05 million, which may provide collateral or future income potential.
• Timely Compliance: All accounts and confirmation statements are filed on time with no overdue filings, indicating good governance on statutory matters.
• Experienced Management Team: Directors are all resident at the same address, suggesting consolidated control and potentially aligned interests.

4. Due Diligence Notes:

• Examine Related Party Loan Terms: Confirm the loan’s repayment schedule, conditions under which repayment may be demanded, and assess the company’s ability to service interest and principal.
• Assess Investment Property Liquidity and Market Value: Verify the valuation methodology and marketability of the investment property to determine if it could be monetized if required.
• Review Cash Flow Projections: Given the negative working capital, detailed cash flow forecasts are essential to understand how the company plans to meet its short-term liabilities.