Company Number: NI682391

Analysis Date: 2025-07-29 16:06 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, with net liabilities and severe working capital deficits indicating a high risk of financial distress.

2. Key Concerns:

• Negative Shareholders' Funds: The company has net liabilities of £3,771 as of 28 February 2024, an improvement from a larger deficit in prior years but still indicative of insolvency on a balance sheet basis.
• Severe Net Current Liabilities: Current liabilities of £502,862 far exceed current assets of £2,961, resulting in a negative net working capital of approximately £499,901. This suggests acute liquidity issues and potential inability to meet short-term obligations.
• Lack of Profit and Loss Disclosure: The directors have elected not to include a profit and loss account in the financial statements, limiting visibility into operational performance and cash flow generation, which are critical to assessing ongoing business viability.

3. Positive Indicators:

• Fixed Assets Growth: Fixed assets have increased substantially from £199,940 in 2023 to £496,415 in 2024, suggesting investment or acquisition of property assets aligned with the company’s real estate activity.
• Compliance with Filing Deadlines: The company is up to date with both accounts and confirmation statement filings, indicating responsible compliance with regulatory requirements.
• Stable Directorship: The board includes three directors appointed since incorporation or early in the company’s life, with no reported disqualifications or compliance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities (£502,862) to assess whether these are short-term debts, related party loans, or other obligations, and their impact on solvency.
• Obtain detailed profit and loss information and cash flow statements to evaluate operational sustainability and cash generation ability.
• Ascertain the valuation and liquidity of fixed assets, given their substantial size relative to liabilities, and whether these assets can be leveraged or sold if necessary.
• Review any contingent liabilities or guarantees not disclosed in the micro-entity accounts that could further impact financial stability.
• Confirm the company’s business model viability given negative equity and absence of employees.