Company Number: 14363284

Analysis Date: 2025-07-20 14:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net assets and net current liabilities that have worsened from the prior year. The limited scale of operations and minimal current assets underline elevated financial risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have increased from approximately £1,521 to £2,230, indicating erosion of equity and potential insolvency risk.
• Severe Working Capital Deficiency: Net current liabilities stand at £14,356, driven by minimal current assets (£51) versus substantial short-term creditors (£14,407), suggesting challenges meeting short-term obligations.
• Minimal Operational Scale and Asset Base: Only one employee, no audit requirement, and fixed assets limited to a single investment property valued at £12,126. This raises questions about operational sustainability and cash flow generation capacity.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating adherence to regulatory requirements.
• Stable Ownership and Management: Two directors with equal shareholding and no indication of director disqualifications or governance issues.
• Clear Business Focus: The company operates in residents property management and buying/selling of own real estate, potentially a niche with asset backing.

4. Due Diligence Notes:

• Examine Creditor Composition: Identify the nature and terms of the £14,407 current liabilities to assess urgency and potential restructuring options.
• Review Cash Flow Projections: Assess future cash inflows, especially rental income or sales proceeds related to the investment property, to understand liquidity prospects.
• Investigate Operational Activities: Confirm whether the company is actively trading or holding assets passively, given minimal employees and negligible current assets.
• Verify Directors’ Plans: Obtain management commentary on plans to address negative equity and working capital deficits.
• Assess Property Valuation: Confirm the carrying value of the investment property and any encumbrances or restrictions that could impact realizable value.