Company Number: 14958017

Analysis Date: 2025-07-29 18:46 UTC

1. Risk Rating: HIGH
   The company’s financial statements reveal net liabilities and negative shareholders’ funds, indicating insolvency risk. The balance sheet shows total net assets (liabilities) of -£2,601, driven by substantial long-term creditors exceeding total assets. This financial position suggests the company currently lacks sufficient capital to meet its obligations.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position (-£2,601) and creditors due after more than one year (£132,484) significantly exceed its fixed assets (£182,065) and minimal current assets (£586), indicating potential difficulty in meeting long-term obligations.
• Liquidity Concerns: Current assets of only £586 against current liabilities of £52,768 show a negative working capital position (-£52,182), implying poor short-term liquidity and potential cash flow issues to cover immediate debts.
• Operational Stability: The company has no employees and limited current assets, suggesting minimal operational activity or revenue generation. As a newly incorporated entity (June 2023) in a capital-intensive industry (real estate letting), its ability to sustain ongoing operations is uncertain without capital injections or revenue growth.

3. Positive Indicators:

• Recent Incorporation: Being a new company allows flexibility for restructuring capital and business plans to address financial weaknesses.
• Single Significant Shareholder: The 75-100% ownership and control by Mr. Sattar Scandari may facilitate decisive governance and potential financial support if needed.
• No Overdue Filings: The company is compliant with filing deadlines, indicating adherence to regulatory requirements and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of the £132,484 long-term creditors to understand repayment schedules, interest obligations, and security arrangements.
• Assess the company’s business plan, revenue streams, and funding sources to evaluate prospects for improving liquidity and solvency.
• Confirm any related-party transactions or shareholder loans that may impact financial stability.
• Review director background and financial standing given his critical role and ownership concentration.
• Monitor ongoing compliance and timely filing of accounts and confirmation statements.