Company Number: 14780825

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   Justification: The company’s balance sheet reveals a significant net liability position (£8,831 negative net assets) largely driven by substantial long-term liabilities (£21,440) exceeding both fixed and current assets. This indicates solvency concerns for a newly incorporated business with minimal assets and no employees.

2. Key Concerns:

• Solvency Risk: Total liabilities after one year (£21,440) far exceed total assets (£12,609), resulting in negative shareholders’ funds. This raises immediate questions about the company’s ability to meet long-term obligations.
• Liquidity Issues: Current assets (£1,741) are insufficient to cover current liabilities (noted as -£500 in one place, but net current assets reported as positive £1,241—this discrepancy needs clarification). The very low working capital and minimal cash equivalents imply tight cash flow constraints.
• Operational Stability: The company has no employees and limited fixed assets, suggesting the business may be in an early or dormant operational phase without established revenue streams or operational capacity.

3. Positive Indicators:

• Compliance: The company is up to date with filing both accounts and confirmation statements, indicating good regulatory compliance and governance practices thus far.
• Clear Ownership and Control: One director, who is also the sole significant controller with 75-100% ownership, simplifies governance and decision-making.
• No Overdue Filings or Legal Issues: The company is active, with no signs of administration, liquidation, or director disqualification.

4. Due Diligence Notes:

• Investigate the nature and source of the £21,440 long-term liabilities: Are these loans, shareholder debt, or other obligations? Assess terms, interest, and repayment capacity.
• Clarify the discrepancy in current liabilities figures and confirm the true short-term liquidity position.
• Review business model and revenue projections given the absence of employees and minimal assets, to evaluate operational viability and sustainability.
• Assess director’s financial support or plans for capital injection given the negative equity position.
• Confirm the company’s trading status and any contracts or agreements underpinning its real estate activities under SIC 68209.