Risk Analysis: 84 Albert Street Limited

1. Risk Rating: LOW

Justification: This entity is a residents' property management company (SIC 98000) established in 1985, managing what appears to be a single residential property at its registered address. The company maintains positive net assets, has no employees (typical for this structure), and filings are current. The business model—collecting service charges and managing communal areas for leaseholders—is inherently stable. However, the 2022 financial anomaly warrants scrutiny, preventing an unequivocal LOW rating.

2. Key Concerns

Concern 1: Extreme Financial Volatility in 2022

Total assets surged from £10,710 (2021) to £63,372 (2022)—a ~492% increase—before reverting to £14,473 (2023). Simultaneously, liabilities jumped from £398 to £5,678 in 2023. This pattern suggests either a large one-off transaction (insurance receipt, major service charge collection, or temporary deposit) or a potential accounting irregularity. The absence of detailed notes in micro-entity accounts makes this impossible to resolve from filed data alone.

Concern 2: Incomplete PSC Register

The PSC section contains only a generic statement with no named individuals. Since 2016, companies have been required to identify people with significant control. For a residents' management company, PSCs should be identifiable leaseholders. The absence of named PSCs may indicate administrative non-compliance or that the company has relied on the "no registrable person" exemption without proper justification.

Concern 3: Significant Current Asset Decline (2024)

Current assets fell from £8,990 (2023) to £3,650 (2024)—a 59% reduction—while fixed assets remained static at £5,483. This cash depletion, absent any corresponding reduction in long-term liabilities, raises questions about whether service charge reserves are being maintained at adequate levels for future maintenance obligations.

3. Positive Indicators

• Long Operating History: Incorporated in 1985, the company has nearly 40 years of continuous operation, suggesting established governance practices and resident engagement.

• Consistent Positive Net Assets: Net assets have remained positive across all 10 years of available data (range: £7,374–£62,544), indicating the company has never been technically insolvent.

• Regulatory Compliance on Filings: Accounts and confirmation statements are filed on time with no overdue status. The 2024 accounts were approved and signed promptly (18 February 2025 for a 31 December 2024 year-end).

• Low Leverage: Liabilities are modest relative to assets in most years, with the 2023 spike appearing to have been resolved by 2024 (liabilities reduced from £5,678 to £480).

• Multiple Director Oversight: Eight officers provide governance breadth, which is typical and appropriate for a residents' management company where leaseholders serve as directors.

4. Due Diligence Notes