Company Number: 13643587

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM
   The company shows continued operations with a positive net asset position in the latest financial year, improving from a small deficit previously. However, a significant concern is the large creditor balances relative to current assets and the absence of employees, indicating potential operational fragility.

2. Key Concerns:

• High Level of Creditors: Current liabilities (~£170k) and long-term creditors (~£371k) substantially outweigh current assets (~£8k), raising questions about short-term liquidity and ability to meet obligations as they fall due.
• Minimal Current Assets and Cash Reserves: Current assets have decreased from previous years, now at only £8,181, which may constrain cash flow flexibility.
• Absence of Employees: Reporting zero employees in the latest year suggests limited operational capacity or reliance on external contractors which may affect business sustainability and growth potential.

3. Positive Indicators:

• Net Assets Turned Positive: After previous net liabilities, the company has posted net assets of £7,018, reflecting an improved equity position albeit still modest.
• Consistent Fixed Asset Base: Fixed assets remain stable at approximately £540k, indicating ownership of tangible real estate assets, consistent with its SIC code for buying and selling own real estate.
• Compliance and Timely Filings: Accounts and confirmation statements are up-to-date and not overdue, reflecting good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant creditor balances, especially those due after one year, to assess risk of covenant breaches or refinancing needs.
• Clarify the business model and operational strategy given zero employees and limited current assets; understand revenue generation and cash flow sources.
• Review director’s plans for capital injection or debt restructuring to support liquidity and solvency going forward.
• Confirm whether the fixed assets are freehold properties or subject to encumbrances, and their market valuation.
• Assess the reason for the previous net liability position and corrective actions taken to reach positive net assets in 2024.