Company Number: 12620566

Analysis Date: 2025-07-20 16:19 UTC

1. Risk Rating: MEDIUM
   The company shows some solvency and liquidity pressures as of the latest financial year, with negative net current assets and limited shareholder funds. However, it remains active, not in liquidation, with no overdue filings, which mitigates immediate high risk concerns.

2. Key Concerns:

• Negative net current assets (£-1,564) as of 31 May 2024 indicating potential short-term liquidity issues to meet current liabilities.
• Increasing current liabilities from £31,666 in 2023 to £41,564 in 2024, which may strain cash flow if not managed.
• Very low shareholder funds (£800) suggesting minimal equity buffer to absorb losses or financial shocks.

3. Positive Indicators:

• The company is current on all statutory filings, indicating good compliance and governance practices.
• The director is the sole significant controller with relevant industry experience (property consultancy), which may support operational continuity.
• Cash reserves remain relatively stable (£38,500 in 2024), close to covering current liabilities, which could provide some short-term liquidity relief.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased current liabilities to assess if they are manageable or indicative of growing financial stress.
• Review cash flow forecasts and any off-balance sheet obligations to better understand liquidity risks.
• Examine the company's revenue streams and profitability trends, as the absence of profit and loss data limits assessment of operational sustainability.
• Confirm the director’s plans to address the negative working capital and low equity levels, including any expected capital injections or debt restructuring.