Company Number: 13885540

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM
   The company shows a significant reduction in net current assets and net assets from 2023 to 2024, from £73,410 to £1,108, indicating increased liquidity pressure. The complete repayment of a bank loan of £984,385 in the latest year improves solvency but also coincides with a large reduction in current assets, particularly stocks. The business is relatively new (incorporated 2022) and operates in a real estate letting sector, which can be capital intensive and cyclical. No overdue filings or legal issues are noted, which supports a moderate risk rating.

2. Key Concerns:

• Sharp decline in net current assets and net assets in the latest year, suggesting tight liquidity and reduced cushion to meet short-term obligations.
• Material reduction in stocks from £1,353,802 to £Nil, which may indicate asset disposals or write-downs impacting operational stability or profitability.
• Dependence on a single parent company (Abode PD Limited) owning 75-100% of shares and voting rights, concentrating control and potentially limiting operational independence.

3. Positive Indicators:

• Company is current with all statutory filings (accounts and confirmation statements), indicating compliance and good governance discipline.
• Bank loan of £984,385 fully repaid in the latest year, removing a significant financial liability and improving solvency profile.
• Directors are consistent since incorporation with no reported disqualifications or adverse conduct records.

4. Due Diligence Notes:

• Investigate reasons behind the large reduction in stocks and related impact on revenue and profitability, including any disposals, impairments, or change in business model.
• Review cash flow statements and profit & loss accounts (not included in filings) to assess operational cash generation and sustainability of current asset levels.
• Assess the strategic relationship with the parent company, including any financial support or guarantees, as the parent holds full control.
• Confirm the nature and extent of current liabilities, especially other creditors (£291,056), to understand timing and risk of payments.