Company Number: 13640348

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, demonstrated by persistent negative net current assets and extremely low net asset values over the last three years. This indicates limited ability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Working Capital: The net current liabilities increased to £2,534 in 2024 from £868 in 2023, showing worsening liquidity. The company’s current liabilities consistently exceed current assets, which may impair operational cash flow.
• Minimal Net Assets and Shareholders’ Funds: Net assets have declined to just £49 in 2024 from £56 in 2023 and were higher in 2021, indicating erosion of equity and a fragile financial base.
• Lack of Profit & Loss Data: Accounts filed are filleted and do not include profit and loss information, limiting insight into operational performance and profitability trends.

3. Positive Indicators:

• Timely Compliance: The company is up to date with its filing obligations (accounts and confirmation statements), indicating good regulatory compliance.
• Stable Directorship: The directors have been consistent since incorporation with no indications of disqualification or governance issues.
• Modest Asset Growth: Fixed assets have increased slightly from £1,819 to £2,752, suggesting some investment in long-term resources.

4. Due Diligence Notes:

• Investigate the company’s cash flow and working capital management closely, including any short-term financing arrangements or director loans supporting liquidity.
• Request full financial statements including profit and loss accounts to assess profitability and operational stability.
• Understand the nature of liabilities and creditor composition to assess if any material contingent liabilities or overdue debts exist.
• Verify the extent and terms of control by Borkett Industries Limited as a significant shareholder and any related party transactions.
• Review business model viability given the real estate agency SIC code and small asset base.