Company Number: 13142340

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net current liabilities and net assets persistently negative over multiple years, indicating an inability to meet short-term obligations. The scale of current liabilities compared to current assets is disproportionate and worsening.

2. Key Concerns:

• Severe Negative Net Current Assets: As of 31 March 2024, net current liabilities stand at approximately £219,933, a sharp increase from previous years, signaling acute liquidity risk.
• Consistent Net Liabilities and Negative Shareholders’ Funds: Net assets are negative (£8,324 in 2024), reflecting accumulated losses and insufficient equity buffer, undermining solvency.
• High Trade Creditors and Other Creditors: Trade creditors (£217,878) dominate current liabilities, raising questions about payment terms and supplier confidence.

3. Positive Indicators:

• Active Compliance and Timely Filings: The company is current with both accounts and confirmation statement filings, reducing regulatory risk.
• Small Employee Base: With an average of 3 employees, fixed overheads may be manageable, potentially limiting cash burn.
• No Indication of Director Disqualifications or Governance Issues: Directors appear in good standing with no reported disqualifications or resignations linked to financial distress.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial trade creditors and other creditors, including whether these represent extended supplier credit or potential unpaid obligations.
• Review cash flow statements and management forecasts to assess short-term liquidity and plans to reduce current liabilities.
• Examine the company’s business model and contracts to understand revenue generation, given the classification in residents property management and the very low fixed asset base.
• Clarify the director loan balance and its terms, as well as the capacity of the current director to support the company financially if needed.