Company Number: 13833809

Analysis Date: 2025-07-20 14:02 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns. The balance sheet demonstrates net liabilities (negative net assets) of £20,592 at the latest year-end, worsening from prior years (£13,734 net liabilities). Substantial long-term creditors (£117,885) exceed fixed assets and current assets combined. Current assets are negligible (£23), leaving virtually no liquidity buffer against current liabilities. The overdue confirmation statement filing also raises governance flags.

2. Key Concerns:

• Negative Net Assets and Increasing Creditors: The company’s liabilities significantly exceed its assets, indicating insolvency risk and potential inability to meet obligations.
• Severe Liquidity Constraints: Current assets are minimal (£23) against current liabilities (not explicitly stated but implied negligible net current assets), suggesting cash flow issues and limited operational liquidity.
• Governance and Compliance Lapse: The company’s confirmation statement is overdue, which may signal management oversight or operational difficulties.

3. Positive Indicators:

• Fixed Asset Growth: Fixed assets nearly doubled from £42,500 to £97,270, indicating some investment or asset acquisition which could support future operations or refinancing.
• Single Shareholder and Director Control: Concentrated ownership and control by Mrs. Irena Cerraj may facilitate swift decision-making and strategic changes if required.
• Micro-Entity Filing Compliance: Despite overdue returns, accounts are filed and prepared under micro-entity provisions, limiting audit costs and administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the £117,885 creditors due after more than one year to understand repayment obligations and any potential restructuring plans.
• Review cash flow statements and bank reconciliations to assess liquidity position and operational cash generation or burn rate.
• Confirm reasons for overdue confirmation statement and check for other outstanding statutory filings or regulatory compliance issues.
• Examine the business model sustainability given the industry classification (real estate letting and trading) and recent asset acquisitions.
• Evaluate director’s plans or intentions regarding remedying the balance sheet deficit and overall financial health.