Company Number: 14914902

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: HIGH
   Element Property Sourcing Ltd exhibits a high-risk profile primarily due to its negative net current assets and shareholders’ funds within its first financial year, indicating immediate solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets (£-1,203): The company’s current liabilities exceed current assets, suggesting it may struggle to meet short-term obligations without additional funding.
• Negative Shareholders’ Funds (£-1,203): Indicates that liabilities outweigh assets, raising concerns about the company’s capital adequacy and financial sustainability.
• No Employees or Revenue Data: The accounts show zero employees and no indication of operating revenues or profit, which questions operational stability and the business model’s viability at this early stage.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with Companies House filing deadlines for both accounts and confirmation statements, reflecting good regulatory discipline.
• Clear Ownership and Control Structure: Two directors each control 25-50% of shares and voting rights, with documented rights to appoint/remove directors, providing transparency in governance.
• Micro-Entity Filing: The company has correctly utilized micro-entity accounting provisions, which is appropriate for its size and simplifies compliance.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Sources: Investigate whether the directors have injected sufficient capital or secured financing to address the working capital deficit and support operations.
• Review Business Model and Contracts: Assess evidence of ongoing or future revenue streams to determine operational sustainability beyond the first year.
• Director Background Checks: Confirm there are no adverse records or disqualifications for the current directors to ensure sound governance.
• Future Financial Projections: Obtain management forecasts or plans to understand how the company intends to improve its financial position and achieve profitability.