Company Number: 14328871

Analysis Date: 2025-07-20 15:07 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position as of the latest accounts, indicating some solvency; however, the substantial level of long-term liabilities relative to net assets and the minimal current assets raise concerns about liquidity and financial resilience.

2. Key Concerns:

• High Long-Term Liabilities: The company carries over £507k in creditors due after one year, nearly matching the value of fixed assets, which could indicate significant debt burden.
• Low Current Assets vs. Current Liabilities: Current assets are very low (£6,466) compared to current liabilities (£131,841), resulting in a negative net working capital position, which suggests potential liquidity challenges.
• Minimal Equity Base: Shareholders’ funds are only £11,499, marginally positive but very low for the asset and liability size, pointing to thin capitalization.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain consistent at £632,000, which supports the company’s core operations in real estate letting activities.
• No Overdue Filings: Both annual accounts and confirmation statements are up to date, indicating sound compliance with statutory requirements.
• Active Status and Experienced Directors: The company is active with two current directors who have been in place since incorporation, suggesting stable governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess the risk of refinancing or covenant breaches.
• Review cash flow statements (not provided) to understand operational liquidity and ability to meet short-term obligations.
• Confirm the quality and marketability of fixed assets to evaluate potential for asset-based financing or liquidation value.
• Examine any related party transactions or guarantees that might not be evident from the micro-entity accounts.
• Verify if the low equity base is due to recent losses or initial capital structure and if there are plans for capital injection.