Company Number: 13952473

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: MEDIUM
   The company shows a small net liability position and negative net current assets, which indicates some solvency and liquidity concerns typical for a micro-entity in its first financial year. However, there are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Negative net assets of £508 suggest the company is currently insolvent on a balance sheet basis.
• Net current liabilities of £208 indicate potential short-term liquidity constraints; current liabilities slightly exceed current assets.
• The company is newly incorporated with only one year of financial data and minimal operational scale (one employee), so operational stability and cash flow sustainability remain unproven.

3. Positive Indicators:

• No overdue statutory filings or confirmation statements, indicating compliance with regulatory requirements.
• Sole director and 100% controlling shareholder are the same individual, streamlining governance and decision-making.
• Micro-entity status reduces complexity and reporting burden, which may be appropriate given its size and stage.
• Business activities focused on real estate management and operations, sectors which can generate fee income and rental revenue.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities causing the negative net asset position and whether these are due to initial setup costs or operational deficits.
• Review cash flow projections and sources of working capital to assess the ability to meet short-term obligations.
• Understand the business plan and revenue model, including contracts or leases in place, to evaluate operational sustainability.
• Confirm that there are no contingent liabilities or related party transactions that may impact financial stability.
• Monitor ongoing compliance with Companies House filings and any changes in director status or control.