Company Number: 14679964

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current liabilities, indicating potential solvency and liquidity concerns despite being a very young entity.

2. Key Concerns:

• Negative Net Assets: The total net liabilities of £6,123 suggest the company’s liabilities exceed its assets, posing solvency risk.
• Net Current Liabilities: With current liabilities exceeding current assets by £38,003, the company may face short-term liquidity challenges to meet obligations as they fall due.
• Debt Structure: Significant long-term creditors (£91,825) relative to total assets imply reliance on external financing, which may pressure cash flows and operational stability if revenues do not ramp up quickly.

3. Positive Indicators:

• Recent Incorporation: The company was incorporated less than two years ago and has filed accounts on time, showing compliance with statutory requirements.
• Directors’ Involvement: Two directors also hold significant control, which may facilitate aligned decision-making and responsiveness.
• Micro-Entity Status: The company operates under micro-entity accounting provisions, which reduces administrative burden and costs, potentially aiding early-stage cash preservation.

4. Due Diligence Notes:

• Review Cash Flow Projections: Assess management’s plans for improving liquidity and servicing short-term liabilities.
• Understand Debt Terms: Investigate the nature of the £91,825 long-term creditors, interest obligations, and repayment schedules.
• Business Model Viability: Evaluate the underlying real estate operations (SIC 68209) for revenue generation and profitability prospects given current financial strain.
• Director Backgrounds: Confirm no adverse records or disqualifications for the directors which could impact governance or risk profile.
• Future Funding Plans: Identify any upcoming capital injections or financing arrangements to support solvency.

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