Company Number: 12812353

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities, indicating solvency and liquidity risks. The continued erosion of shareholder funds over several years without any fixed assets or capital injection raises concerns about financial stability.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company has reported net current liabilities of £8,147 and negative shareholders funds of the same amount in the latest year, worsening from prior years. This indicates the company’s liabilities exceed its assets and can struggle to meet short-term obligations.
• Lack of Fixed Assets or Tangible Investment: No fixed assets are reported, which may suggest limited operational capacity or investment in long-term resources needed for sustainable business operations in building development.
• Small Share Capital and No Audit: With only £1 share capital and exemption from audit, there is limited financial buffer or external assurance on the accuracy and completeness of financial data, potentially masking underlying issues.

3. Positive Indicators:

• Timely Filing Compliance: The company has filed accounts and confirmation statements on time, showing adherence to statutory compliance and no overdue filings or penalties.
• Single Director with Clear Control: The sole director and 100% owner is clearly identified, simplifying governance and accountability structures.
• Active Status and Ongoing Operations: The company is active and appears to have maintained a consistent employee base (10 employees in latest year), which may indicate ongoing business activity.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank balances to assess actual liquidity and cash management practices beyond balance sheet figures.
• Investigate the nature of the company’s liabilities classified as “other creditors” to understand payment terms and creditor relationships.
• Obtain management commentary or strategic report (if available) for insight on future plans to address negative equity and operational strategy.
• Assess if there are any contingent liabilities or off-balance sheet exposures not disclosed.
• Confirm the director’s financial commitment or plans for recapitalisation to improve solvency.
• Evaluate the market position and client base in the building development sector to understand revenue sustainability.