Company Number: 13048508

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has deteriorated over recent years, coupled with significant net current liabilities and reliance on long-term creditors. This raises significant solvency and liquidity concerns for investors.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s shareholders’ funds are negative (£-17,432 as of 2024), indicating that liabilities exceed assets and the company is technically insolvent on a balance sheet basis.
• Working Capital Deficit: Net current assets are substantially negative (£-66,799), reflecting current liabilities far exceeding current assets, which signals liquidity stress and potential difficulty meeting short-term obligations.
• High Long-Term Creditors: The company carries significant creditors due after one year (£125,941), which could pressure cash flows if refinancing or repayment is required.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets remain consistent (£175,908), suggesting some tangible asset backing possibly related to its real estate activities.
• Compliance and Filing: The company is up to date with its accounts and confirmation statement filings, indicating regulatory compliance and good governance in statutory reporting.
• Single Director and PSC Alignment: The director and sole person with significant control (PSC) is the same individual, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition and market value of fixed assets to assess if they can realistically support creditor claims or be leveraged for liquidity.
• Creditor Terms and Covenants: Review the terms of both current and long-term creditors to understand repayment schedules, interest obligations, and any potential defaults or breaches.
• Cash Flow and Profitability: Obtain management accounts or cash flow statements to evaluate operational cash generation and the company’s ability to meet ongoing liabilities.
• Director’s Plans and Support: Assess if the director or PSC has committed further capital or guarantees to improve solvency and liquidity.
• Potential Contingent Liabilities: Explore any off-balance sheet items or contingent liabilities that may further impact financial stability.