Company Number: 14187653

Analysis Date: 2025-07-20 13:52 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a positive net asset position with increasing shareholder funds year-on-year, indicating some capital growth. However, a significant imbalance exists between fixed assets and current liabilities, with current liabilities greatly exceeding current assets, leading to a large negative net working capital. This raises concerns about short-term liquidity and the ability to meet immediate obligations.

2. Key Concerns:

• Liquidity Risk: Current assets (£12) are negligible compared to current liabilities (£217,519 in 2024), yielding a negative net current asset position of -£217,507. This suggests potential difficulties in meeting short-term liabilities without relying on asset disposals or external financing.
• Asset Composition: The company’s assets are almost entirely fixed assets (£281,300 in 2024) with almost no liquid assets, which may limit operational flexibility and the ability to cover debts promptly.
• Operational Scale and Sustainability: With only one employee (the director) and being classified as a micro-entity, the business scale is very small. The primary SIC code indicates it operates as a holding company, which typically depends on underlying subsidiaries or investments for income. Lack of detailed operational or income data limits assessment of ongoing business sustainability.

3. Positive Indicators:

• Consistent Filing and Compliance: Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance.
• Growth in Net Assets: Shareholders’ funds increased from £19,493 in 2023 to £63,793 in 2024, reflecting an improved equity position.
• Clear Control Structure: The sole director and 75-100% PSC ownership by the same individual provide straightforward governance and decision-making clarity.

4. Due Diligence Notes:

• Verify the nature and liquidity of the fixed assets (e.g., are they readily saleable investments or illiquid long-term holdings?).
• Investigate the source of funding for the large current liabilities and whether these are sustainable or due for imminent repayment.
• Request detailed income statements or cash flow information to evaluate operational cash generation and potential reliance on external funding.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess the relationship and financial health of any subsidiaries or investments linked to the holding company structure.