Company Number: 12789238

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: MEDIUM
   The company shows a very tight net asset position with minimal equity (£7,939 as of 2024), and a significant increase in short- and long-term liabilities noted in 2024 (£703,042 creditors after one year). While current assets have increased substantially (£709,177), current liabilities have also increased almost equally (£703,042), indicating a marginal working capital buffer. These factors suggest some solvency risk despite no overdue filings or apparent governance issues.

2. Key Concerns:

• High Long-Term Creditors: The large amount of creditors falling due after more than one year (£703,042) relative to net assets could indicate leverage risk or reliance on external financing.
• Minimal Share Capital and Equity: Share capital is nominal (£1.00), and shareholders’ funds are low, limiting the company’s financial resilience.
• No Employees: Zero employees raise questions about operational capacity and sustainability of business activities.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Substantial Increase in Current Assets: The jump from £49k to £709k in current assets between 2023 and 2024 could reflect acquisition of real estate assets or cash reserves, potentially enhancing liquidity.
• Clear Ownership and Governance: The company has two current directors with no public record of disqualification or governance issues.

4. Due Diligence Notes:

• Nature and Terms of Long-Term Creditors: Investigate the composition, security, and repayment terms of the £703k creditors due after more than one year to assess solvency risk.
• Asset Quality and Liquidity: Review the detailed breakdown of current assets to determine if these are liquid (cash/debtors) or illiquid (stock or receivables) given the company’s real estate trading activity.
• Business Model and Revenue Streams: Since there are no employees and limited financial disclosures, clarify how the company operates and generates revenue in the real estate trading sector.
• Director Related Party Transactions: Given the significant shareholding and control by one director, check for any related party transactions that could impact financial stability.