Company Number: 12922218

Analysis Date: 2025-07-20 13:20 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to persistent negative net assets and significant current liabilities exceeding current assets, implying solvency challenges.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £7,823 as of the latest accounts (FY 2023), deteriorating from -£6,452 the prior year, indicating accumulated losses or deficits.
• Liquidity Risk: Current liabilities (£169,849) vastly exceed current assets (£60) as of FY 2023, signaling an inability to meet short-term obligations without additional capital or financing.
• Dependence on Director/Single Shareholder: The sole director and 75-100% controlling shareholder are the same individual, concentrating control and limiting governance oversight.

3. Positive Indicators:

• Stable Fixed Assets: The company holds substantial fixed assets valued at £310,170 consistently over the past four years, which may represent real estate holdings aligned with its SIC codes.
• No Overdue Filings: Both accounts and confirmation statements are filed timely, indicating compliance with regulatory deadlines.
• Consistent Business Activity: The company’s business classification in real estate management and trading appears consistent, with no indication of operational changes or restructuring.

4. Due Diligence Notes:

• Asset Valuation: Verify the nature and market value of fixed assets (£310k) to assess their liquidity and potential to cover liabilities.
• Liabilities Composition: Investigate the nature of current and long-term creditors to understand repayment terms, creditor identity, and any contingent liabilities.
• Cash Flow and Profitability: Obtain detailed income statements and cash flow statements to evaluate operational cash generation and reliance on financing.
• Director’s Background: Review the director’s track record and any potential conflicts of interest given sole control.
• Future Funding Plans: Assess any plans for capital injection or restructuring to address negative equity and liquidity shortfalls.