Company Number: 12831023

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and liquidity improvement in the latest year; however, the significant increase in current liabilities relative to current assets, combined with low equity and minimal share capital, indicates a moderate risk of solvency and liquidity issues.

2. Key Concerns:

• Sharp rise in current liabilities from £259 (2023) to £67,961 (2024), which could strain short-term liquidity despite increased cash holdings.
• Very low share capital (£1.00), suggesting limited financial buffer and potential capital constraints.
• Limited financial history and small scale of operations, given the company was incorporated in 2020 and only recently expanded staff to 2 employees, which may impact operational sustainability.

3. Positive Indicators:

• Cash balance improved substantially to £68,600 in 2024 from £28 in 2023, indicating improved liquidity management or recent capital injection.
• Positive net assets and shareholders' funds increased to £1,733, showing some retained profitability or equity growth.
• Timely filing of accounts and confirmation statements with no overdue returns, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate nature and terms of the large current liabilities recorded in 2024 to assess payment timelines and creditor relationships.
• Review cash flow statements and bank reconciliations to confirm quality and sustainability of cash balances.
• Understand business model and revenue generation given SIC codes relate to real estate letting and trading, and evaluate contract terms, customer concentration, and revenue consistency.
• Examine directors’ background and related party transactions, especially given multiple director changes and significant control vested in a young individual (born 2002).
• Confirm whether the company has any contingent liabilities or off-balance-sheet obligations.