Company Number: 13265712

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: MEDIUM
   The company shows strong net assets and shareholder equity; however, the current liabilities exceed current assets resulting in negative net current assets and a significant long-term creditor balance. This presents moderate solvency and liquidity concerns despite overall positive net asset value.

2. Key Concerns:

• Negative net current assets of £40,628 at 31 March 2024, indicating potential short-term liquidity pressure to meet obligations due within one year.
• Large long-term creditor balance of £205,000 due after more than one year, representing related party loans with no fixed repayment terms, which may affect cash flow planning and financial flexibility.
• Declining cash balance from £276,700 at incorporation to £14,216 at 31 March 2024, raising questions on cash management and operational cash flow sufficiency.

3. Positive Indicators:

• Net assets remain robust at £263,195 as at 31 March 2024, demonstrating a positive equity base.
• The company has complied fully with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance and governance discipline.
• Retained earnings remain positive, and the company reported a small profit (£3,950) for the year ended 31 March 2024, showing operational profitability at least at a marginal level.

4. Due Diligence Notes:

• Investigate the nature, terms, and security of the £205,000 related party loan from Kinver Capital Limited, including any contingent liabilities or repayment expectations.
• Review detailed cash flow statements and working capital management to understand the causes of cash depletion and negative net current assets.
• Assess the sustainability of the business model given the SIC code 96090 ("Other service activities not elsewhere classified") and the limited disclosure on revenue or operational scale.
• Confirm the valuation and recoverability of fixed asset investments totaling £508,823, including the underlying assets Kinfield and Kineagle, to verify their contribution to asset strength.