Company Number: 14249451

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile mainly due to persistent negative net assets (shareholders' funds) over its first two full financial years, indicating accumulated losses and potential solvency concerns. The presence of significant long-term creditors exceeding current assets further aggravates this risk. While the company remains active and filings are up to date, the financial stability is questionable.

2. Key Concerns:

• Negative Net Assets and Shareholder Deficit: The company reported net liabilities of approximately £17k in the latest year and about £49k in prior years, reflecting ongoing losses or capital erosion.
• Long-Term Creditors Substantially Exceed Current Assets: Creditors due after more than one year stand at £32,899 (down from £63,899), which is nearly 1.4 times the current assets of £22,845, suggesting leverage and potential difficulty meeting obligations in the longer term.
• Limited Cash Reserves and Debtor Concentration: Although cash improved to £12,481 (from £3,451), a significant portion of current assets is tied up in debtors (£10,364), which may affect liquidity if collections are slow or doubtful.

3. Positive Indicators:

• Up-to-Date Statutory Filings: The company has no overdue accounts or confirmation statement filings, indicating compliance with regulatory requirements.
• Going Concern Assertion by Directors: The directors assert the company as a going concern, implying management confidence in operational continuity.
• Active Website and Established Presence: The company’s website and stated experience suggest ongoing business activity in the real estate agency sector, supporting operational stability.

4. Due Diligence Notes:

• Assess Quality and Collectability of Debtors: Investigate the aging and reliability of trade and other receivables to evaluate liquidity risk.
• Clarify Nature and Terms of Long-Term Creditors: Understand creditor identities, repayment schedules, and any covenants or security interests attached.
• Review Profit & Loss Trends and Cash Flow Statements: Since only balance sheet data is provided, analyzing income and cash flow statements will clarify operational sustainability and funding gaps.
• Examine Directors’ Plans for Addressing Capital Deficiency: Explore whether additional capital injections, refinancing or operational restructuring are planned.
• Confirm No Director Disqualifications or Compliance Issues: Although none are indicated, verification of director conduct records and governance practices is prudent.