Company Number: 12847888

Analysis Date: 2025-07-20 12:11 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders' funds, indicating potential solvency issues. The current liabilities consistently exceed current assets by a significant margin, raising concerns about liquidity and the ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £1,114,487 as of 2024 represent a substantial liquidity risk, implying the company may struggle to cover short-term debts.
• Negative Shareholders’ Funds: The company has accumulated losses reflected in negative equity (-£9,318 in 2024), suggesting ongoing financial strain.
• Lack of Audit and Limited Disclosure: As a micro-entity, the company is exempt from audit which limits transparency. The financial statements are unaudited, reducing the reliability and depth of financial insight.

3. Positive Indicators:

• Stable Management: Directors have been in place since incorporation with no public records of disqualification or compliance issues.
• Timely Filing: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance.
• Fixed Asset Growth: Fixed assets increased significantly from £610,729 in 2023 to £1,105,169 in 2024, which may reflect investment in property or operational capacity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether these are trade payables, loans, or other obligations and if any refinancing or restructuring plans exist.
• Examine cash flow statements and bank statements (not provided) to evaluate actual liquidity and operational cash generation.
• Clarify the business model and revenue streams under SIC codes related to property management and letting, including tenant stability and contract terms.
• Review any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.
• Confirm whether fixed asset valuations are supported by independent valuations or if impairment risks exist.