Company Number: 12835445

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in financial position over the last financial year, moving from positive net assets of £52,544 in 2023 to net liabilities of £3,355 in 2024. This negative net asset position indicates solvency concerns.

2. Key Concerns:

• Solvency Risk: The company’s net current liabilities have increased to £3,883 (2024), indicating a working capital deficit. The negative net assets also imply the company’s liabilities exceed its assets.
• Liquidity Concerns: Current assets have dropped sharply from £89,603 to £7,728, while current liabilities remain significant at £11,611. This raises questions about the company’s ability to meet short-term obligations.
• Operational Stability: The dramatic decline in asset values and working capital within one year suggests operational or financial distress, with risk of continued negative performance. The company has minimal fixed assets and very low share capital (£1), which limits financial resilience.

3. Positive Indicators:

• The company remains active with no overdue filings or accounts, indicating compliance with regulatory filing requirements.
• The director has been continuously appointed since incorporation, with no indication of disqualification or governance issues.
• The company operates in real estate trading (SIC 68100), a sector that can generate asset value, though current financials suggest challenges.

4. Due Diligence Notes:

• Investigate the cause of the sharp asset and working capital decline between 2023 and 2024, including any unusual transactions or impairments.
• Review cash flow statements and creditor aging to assess liquidity management and potential defaults.
• Confirm existence and valuation of current assets reported, as the drop from £89k to £7.7k is substantial.
• Evaluate any contingent liabilities or off-balance sheet exposures not reflected in accounts.
• Consider director’s plans or any restructuring efforts to restore financial health.