Company Number: NI680433

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by persistent negative net assets and substantial current liabilities exceeding current assets by a wide margin. The absence of positive working capital and recurring large creditor balances raise concerns regarding its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Shareholders’ funds remain negative (£-5,253 as of 2024), indicating accumulated losses and an erosion of equity capital.
• High Current Liabilities vs. Minimal Current Assets: Current liabilities stand at £5,648 against current assets of only £395 in 2024, leading to negative net current assets of £-5,253, signaling liquidity stress.
• Disposal of Investment Property: The investment property, valued at £648,393 in 2023, was disposed of by 2024, yet no corresponding asset or cash inflow is reflected, raising questions about the timing and use of proceeds and overall asset base.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Single Director with Significant Control: Mr James Ross Wheeler holds full ownership and voting control, which may facilitate swift decision-making.
• Going Concern Assertion: The director affirms a reasonable expectation of continuing operations, suggesting some confidence in future viability.

4. Due Diligence Notes:

• Investigate the nature and outcome of the investment property disposal, including where proceeds were allocated and any related liabilities.
• Review creditor composition and terms to assess whether the current liabilities include any overdue or disputed amounts.
• Examine cash flow forecasts and funding arrangements supporting the director’s going concern statement, given the current negative working capital position.
• Clarify the absence of an audit and the omission of a profit and loss account, to understand the completeness and transparency of financial reporting.
• Verify whether any related party transactions or loans exist, especially given the director’s sole control and minimal equity capital.