Company Number: 12425286

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency concerns and negative net asset value, which pose a high risk to creditors and investors.

2. Key Concerns:

• Negative Net Assets: The company reported net assets of -£22,379 as of 31 March 2024, indicating liabilities exceed assets, a sign of financial distress.
• High Long-Term Liabilities: Creditors due after more than one year stand at over £1 million, substantially exceeding fixed assets (£1.07 million), suggesting heavy indebtedness and potential over-leverage.
• Liquidity Imbalance: Current liabilities (£104,139) vastly exceed current assets (£32,978), resulting in a negative net working capital position, raising concerns about the company’s ability to meet short-term obligations.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets have remained relatively stable around £1.07 million, indicating some asset backing presumably in real estate given the SIC codes.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, demonstrating regulatory compliance and governance diligence.
• Small Employee Base: Only two employees, which may indicate low operational overheads.

4. Due Diligence Notes:

• Examine Debt Structure: Investigate the nature, covenants, and maturity profile of the £1 million+ long-term creditors to assess refinancing risk.
• Cash Flow Analysis: Obtain management accounts or cash flow statements to evaluate liquidity beyond balance sheet snapshots.
• Asset Valuation: Verify fixed asset valuations and whether revaluation assumptions are realistic or inflated.
• Profitability and Revenue Trends: As income statements are not available, request detailed profit & loss data to understand operational performance and sustainability.
• Director Backgrounds: Review directors’ conduct records for any adverse history, although none is indicated here.