Company Number: 13971070

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent net liabilities indicating negative shareholders’ funds for the last three years. Despite reporting net current assets, the overall solvency position is negative due to substantial long-term liabilities exceeding total assets. This raises serious concerns regarding the company’s ability to meet long-term obligations.

2. Key Concerns:

• Negative Net Assets: The company has reported negative shareholders’ funds (£-30,129 in 2024), reflecting accumulated losses or high indebtedness relative to asset base.
• High Long-Term Creditors: Creditors due after one year amount to £608,595 (2024), exceeding total assets after current liabilities, indicating leverage risk and potential solvency issues.
• Declining Current Assets: Current assets decreased sharply from £859,079 (2023) to £496,711 (2024), signaling potential liquidity squeeze if this trend continues.

3. Positive Indicators:

• Positive Net Current Assets: The company reports net current assets of £369,216 (2024), suggesting it can cover short-term liabilities at present.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance and good governance in terms of statutory filings.
• Single Director with Full Control: Clear ownership and decision-making via Mr. Brodie Robert Ingoe may streamline strategic actions.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risks or potential covenant breaches.
• Review cash flow statements and projections to evaluate liquidity sustainability beyond balance sheet snapshots.
• Clarify the origin of negative equity (accumulated losses or shareholder loans) and any plans for recapitalization.
• Confirm if the fixed assets valued at £210,000 are tangible and realizable at stated amounts.
• Examine business model viability in the real estate sector given recent market conditions and the company’s scale (micro entity).
• Verify director’s background for any past financial or regulatory issues, though none are indicated here.