Company Number: SC776614

Analysis Date: 2025-07-29 14:06 UTC

1. Risk Rating: HIGH
   Corbin Homes Ltd exhibits significant solvency concerns, highlighted by negative shareholders' funds (£-232,025) and net liabilities (£-231,925) within its first financial year. The company’s current liabilities substantially exceed current assets, creating a liquidity risk. The presence of long-term creditors (£266,798) further exacerbates the solvency risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Indicates the company is insolvent on a balance sheet basis, which is a material red flag for investors.
• High Creditors Falling Due After One Year: Substantial long-term liabilities (£266,798) compared to minimal assets can jeopardize ongoing operations without further capital injection or cash flow.
• Limited Operating History and Scale: Incorporated in July 2023 with only one employee and small current asset base, the company lacks operational track record or scale to demonstrate sustainability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement are up to date, demonstrating regulatory compliance and management’s diligence in statutory obligations.
• Clear Ownership and Control: Single PSC (Thomas Alexander Williamson) with full control simplifies governance and decision-making processes.
• Industry Focus in Real Estate Management: SIC codes indicate diversified real estate activities which could offer revenue streams if managed effectively.

4. Due Diligence Notes:

• Review Nature and Terms of Long-term Creditors: Understand the composition, repayment terms, and security of the £266,798 creditors to assess refinancing or restructuring risks.
• Examine Cash Flow Projections and Funding Plans: Given negative net assets and limited cash (£8,498), assess management’s strategy to improve liquidity and solvency.
• Assess Revenue Recognition and Debtor Quality: Confirm the collectability and aging of debtors (£26,375) as they form a significant portion of current assets.
• Evaluate Director’s Experience and Related Party Transactions: Considering sole director and shareholder, check for any related party loans or transactions impacting financial position.