Company Number: 14193820

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency and liquidity risk as of the last financial year end. Negative net assets (£-36,707) and significant net current liabilities (£-204,347) indicate the company is not currently able to meet short-term obligations from available current assets. The large long-term bank loan (£349,579) relative to equity also increases financial leverage and risk.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities exceed current assets by over £200k, highlighting potential cash flow and working capital issues.
• Negative Shareholders’ Funds: Equity is in deficit, suggesting accumulated losses or asset impairments. This undermines financial stability and capital buffer.
• High Long-Term Debt: Bank loans exceed net assets, signaling heavy reliance on external financing that may be difficult to service if cash flows are weak.

3. Positive Indicators:

• Asset Base: The company holds substantial fixed assets (£517,219), including goodwill (£80,000) and tangible assets (£437,219), which could potentially be used as collateral or support operations.
• No Filing Delinquencies: All statutory filings including accounts and confirmation statements are up to date, reflecting compliance with regulatory requirements.
• Active Directors and Clear Ownership: The company has three current directors with clear significant control arrangements, which suggests governance structures are in place.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loan, including repayment schedules and covenants, to assess refinancing or default risks.
• Review management accounts and cash flow forecasts to ascertain current liquidity position and operational cash generation ability.
• Examine the goodwill valuation and impairment testing procedures, given the intangible asset of £80,000 could be at risk if the business underperforms.
• Clarify the operational status and profitability trends since incorporation in 2022, as no income statement is filed and turnover data is unavailable.
• Confirm related party transactions or director loans that might affect financial position but are not disclosed here.