Company Number: 12866823

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with persistent negative net assets and shareholders’ funds, coupled with a large amount of creditors due within and beyond one year, indicating potential difficulty in meeting obligations.

2. Key Concerns:

• Negative Net Assets: The company has recorded net liabilities consistently over the last five years, with net assets of -£778 as of 30 September 2024, indicating erosion of equity and insolvency risk.
• High Current Liabilities vs. Low Current Assets: Current liabilities (£221,250) far exceed current assets (£943), resulting in a large negative working capital (~-£85,000), which points to liquidity stress and potential cash flow challenges.
• No Employees and Minimal Operational Data: The absence of employees and very limited current assets could imply limited operational activity or reliance on external management, raising concerns about business sustainability and ongoing viability.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statement filings, suggesting adherence to regulatory requirements without overdue submissions or penalties.
• Ownership and Control Transparency: There is a clear controlling party (Mr. Milton Turner) with 75-100% ownership, which may simplify decision-making and strategic direction.
• Stable Fixed Asset Base: Fixed assets remain consistent at £305,832 over the years, which could represent real estate holdings supporting the business model.

4. Due Diligence Notes:

• Investigate the nature and terms of the large creditors due both within one year and beyond one year to assess repayment schedules, potential refinancing, or covenant breaches.
• Clarify the operational model given the absence of employees and minimal current assets; determine if the company is generating revenue or purely holding assets.
• Review any contingent liabilities or off-balance sheet obligations not apparent in the filed accounts.
• Assess the valuation and liquidity of fixed assets to understand if they can be leveraged or sold if required to improve solvency.
• Examine director’s plans or forecasts for returning the company to positive equity and sustainable operations.