Company Number: 14121453

Analysis Date: 2025-07-20 17:37 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets and working capital deficits in the latest financial year, indicating potential solvency and liquidity issues. The net assets position has deteriorated from a positive £1,081 in 2023 to negative £315 in 2024, signaling financial distress.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net current assets have declined from +£1,081 to -£1,189, and net assets have swung into negative territory, suggesting it may struggle to pay creditors as they become due.
• Limited Financial History and Size: Incorporated in 2022 and classified as a micro-entity, the company’s short trading history and small scale limit visibility into operational sustainability and financial resilience.
• Concentration of Control: Two directors each control 25-50% of shares and voting rights, which may create governance risks if disagreements arise, although no direct governance issues are apparent.

3. Positive Indicators:

• Timely Filing and Compliance: Both annual accounts and confirmation statements are up to date with no overdue filings, reflecting adherence to regulatory requirements.
• Stable Employee Base: The company maintains a small but consistent workforce of two employees, indicating operational continuity.
• No Indications of Insolvency Proceedings: The company is active and not under liquidation or administration.

4. Due Diligence Notes:

• Obtain detailed cash flow statements to assess liquidity and ability to meet short-term obligations given current liabilities exceed current assets.
• Investigate the reasons behind the decline in net assets and working capital, including any losses or increased liabilities not apparent in the abridged accounts.
• Review management plans or strategies to restore financial health and assess the sustainability of the business model in the residents property management sector.
• Verify no undisclosed contingent liabilities or related party transactions that could impair financial stability.