Company Number: 12496050

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency concerns with net liabilities reported in the latest accounts, indicating it is currently insolvent on a balance sheet basis. Negative net assets and increasing creditor balances pose a material risk to meeting obligations.

2. Key Concerns:

   • Negative Net Assets: The 2024 accounts show net liabilities of £10,933, a decline from prior years, signaling deteriorating financial health.
   • High and Increasing Creditors: Creditors due after more than one year increased sharply from £22,584 in 2023 to £128,509 in 2024, suggesting growing long-term indebtedness.
   • Liquidity Pressure: Despite a rise in current assets to £107,515 in 2024, current liabilities at £130,339 exceed current assets, resulting in negative net current assets of £22,824. This indicates potential cash flow difficulties.

3. Positive Indicators:

   • Asset Base Stability: Fixed assets have remained consistent at £140,400 over the last four years, which could represent tangible property holdings aligned with the company’s real estate trading activity.
   • No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, reducing regulatory risk.
   • No Employees: Operating with zero employees may imply a low overhead cost structure, which could mitigate some operational risk.

4. Due Diligence Notes:

   • Examine Nature of Creditors: Detailed review of creditor composition, especially the large increase in long-term creditors, to assess terms, related party exposure, or contingent liabilities.
   • Cash Flow and Profit & Loss Analysis: Access to profit and loss statements and cash flow data to evaluate operational performance and liquidity beyond balance sheet snapshots.
   • Director Background Checks: Verify the track record and financial acumen of current directors, considering the company’s financial strain.
   • Asset Valuation Confirmation: Validate the valuation and marketability of fixed assets reported to ensure they are not overstated.