Company Number: 13952948

Analysis Date: 2025-07-29 16:04 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and no overdue filings, but significant long-term liabilities and limited cash reserves present moderate solvency and liquidity risk.

2. Key Concerns:

• High long-term liabilities (£134,886) relative to net assets (£4,029) could pressure solvency if cash flow weakens.
• Very low cash balances (£4,916) compared to current liabilities and no clear indication of incoming revenues raises liquidity concerns.
• Limited operating history since incorporation in 2022 restricts confidence in operational stability and track record.

3. Positive Indicators:

• Company is current with statutory filings (accounts and confirmation statements), indicating regulatory compliance.
• Net assets have increased from £2,156 to £4,029 year on year, suggesting some retained earnings growth.
• Tangible fixed assets (property) are substantial (£135,828), consistent with the business’s real estate activity and potential collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£134,886), including payment schedules and interest obligations.
• Confirm revenue streams and cash flow sufficiency to meet liabilities, given low cash and working capital.
• Review directors’ plans and strategy for growth or debt reduction, especially given the short operational history.
• Consider background checks on directors for any undisclosed regulatory or financial issues (none indicated here but prudent).
• Verify the valuation and marketability of the tangible fixed assets for potential liquidity in stress scenarios.