Company Number: 14512612

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH

Justification: The company shows a negative net asset position (£-16,370) with liabilities exceeding assets primarily due to significant long-term creditors (£383,463) and current liabilities (£476,874) exceeding current assets (£32,260). This indicates solvency concerns as liabilities outweigh assets. The micro-entity scale and short operating history (incorporated Nov 2022) limit financial resilience and operational track record.

2. Key Concerns:

• Negative net assets suggest the company is technically insolvent on a balance sheet basis.
• Current liabilities (£476,874) vastly exceed current assets (£32,260), indicating poor liquidity and potential cash flow issues.
• Significant creditor balances falling due after one year (£383,463) pose refinancing or repayment risk given limited equity buffer.

3. Positive Indicators:

• The company is active, with no overdue filings or compliance issues noted.
• Directors have fulfilled filing obligations timely, showing adequate governance adherence.
• The business operates in real estate management and trading, which can generate recurring fee income, though this is unproven here.

4. Due Diligence Notes:

• Investigate the nature and terms of creditors—are these related party loans, bank debt, or trade creditors?
• Review cash flow forecasts and working capital management plans to assess operational viability.
• Assess revenue generation, profitability, and contract backlog since incorporation to understand sustainability.
• Confirm any contingent liabilities or off-balance sheet commitments.
• Clarify directors’ plans to restore solvency or raise capital given negative equity.