Company Number: 14802306

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: HIGH
   B Ashton Developments Ltd shows significant solvency concerns as evidenced by negative net assets and shareholders' funds, largely due to a considerable long-term creditor balance. The micro-entity’s current liabilities and negative equity point to a fragile financial position.

2. Key Concerns:

• Negative Net Assets: The company reports net assets of £(1,239), indicating liabilities exceed assets, a clear solvency risk.
• Substantial Long-Term Liabilities: Creditors due after more than one year stand at £350,000, a sizeable obligation for a micro-entity with minimal current assets, raising questions about the source and terms of this debt.
• Limited Operating History and Scale: Incorporated in April 2023 with only two employees, the entity is in an early stage with no profit and loss account filed, limiting visibility into operational sustainability and cash flow generation.

3. Positive Indicators:

• Current Assets Slightly Exceed Current Liabilities: Net current assets are positive at £15,112, suggesting short-term obligations are currently manageable.
• Compliance with Filing Deadlines: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Experienced Directors: Both directors have full control and appear engaged, with no disqualification records noted, which may support future strategic decision-making.

4. Due Diligence Notes:

• Clarify Nature and Terms of £350,000 Long-Term Creditors: Investigate the creditors’ identity, repayment schedule, and any associated covenants or guarantees.
• Review Cash Flow Projections and Funding Plans: Given negative equity, assess how the company plans to finance operations and repay debts.
• Obtain Profit and Loss Data: Although exempt from filing, acquiring internal management accounts or P&L statements would aid in assessing operational viability.
• Confirm Absence of Director Disqualifications or Related Party Transactions: Verify director backgrounds and any related party dealings that might affect financial stability.
• Understand Business Model and Market Position: As a building project developer, evaluate market risks, pipeline of projects, and competitive positioning.