Company Number: 13452530

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH
   The company demonstrates significant negative net assets and net current liabilities that have worsened over the reported periods, indicating potential solvency risks. The very limited share capital (£2) relative to substantial liabilities suggests insufficient equity buffer. Although accounts are filed timely, the financial position raises concerns about the company’s ability to meet obligations without further capital injection or debt restructuring.

2. Key Concerns:

• Negative Equity Position: Net liabilities increased from approximately £261k in mid-2022 to over £625k by end-2023, signaling erosion of shareholder funds and potential insolvency risk.
• Liquidity Pressure: Net current liabilities stand at over £626k, with current liabilities nearly double current assets, implying difficulty in meeting short-term obligations as they fall due.
• Concentration of Control: Ownership and control are concentrated among a few entities/persons, notably Integritas Property Group (IPG) Limited and Mr Mitchell Walsh, which could limit independent oversight and may affect governance quality.

3. Positive Indicators:

• Active Filing and Compliance: The company is current on both accounts and confirmation statement filings, reflecting regulatory compliance and governance discipline.
• Growing Property Stock Asset: Property stock increased from £48.6k to £261.2k in the latest period, indicating active investment in inventory which may support future revenue generation.
• Cash Presence: Despite liquidity challenges, the company held over £68k in cash at year-end 2023, providing some short-term operational buffer.

4. Due Diligence Notes:

• Review Debtor Quality: Debtors decreased significantly from £561k to £324k; investigation into collectability and overdue receivables is required to assess realisable value.
• Examine Creditor Terms and Debt Structure: Detailed analysis of the nature and terms of the £1.28m current liabilities, especially amounts owed to group undertakings and other creditors, to understand repayment risks and related party transactions.
• Assess Going Concern Assumptions: Directors state a going concern basis, but given financial deterioration, verify supporting cash flow forecasts, capital commitments, and funding arrangements.
• Investigate Related Party Transactions: The prominence of group undertakings in debtor and creditor balances warrants scrutiny for transfer pricing, financing arrangements, and potential contingent liabilities.
• Confirm No Director Disqualifications or Governance Issues: No data indicates director disqualifications, but confirm status and assess governance controls given concentrated ownership.