Company Number: 12774163

Analysis Date: 2025-07-20 18:36 UTC

1. Risk Rating: HIGH
   The company shows persistent and significant negative net assets and net current assets, with liabilities exceeding current assets by over £117,000 as of the latest accounts. Cash reserves are negligible (£1), indicating a lack of liquidity and potential difficulty meeting short-term obligations.

2. Key Concerns:

• Solvency Issues: Net assets remain negative for multiple years, indicating the company’s liabilities exceed its total assets, which raises concerns about its ability to continue as a going concern.
• Liquidity Constraints: Cash on hand is minimal (£1), with current liabilities substantially higher than current assets, suggesting the company may struggle to pay creditors as they fall due.
• Operational Viability: The company has no employees and no reported profit or turnover data, relying solely on tangible fixed assets (land/buildings) with no depreciation or asset value improvement, which questions the sustainability of its business operations in buying and selling own real estate.

3. Positive Indicators:

• The company is up to date with all statutory filings (accounts and confirmation statements), showing regulatory compliance is being maintained.
• It owns tangible fixed assets (land and buildings valued at £107,952), which could potentially be liquidated or used as collateral.
• The director has remained consistent since incorporation, potentially providing stability in management.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities (£117,025) to understand creditor types, payment schedules, and any potential for restructuring.
• Assess the valuation and marketability of the fixed assets to determine if they can support creditor claims or future financing.
• Confirm the company’s revenue generation, cash flow, or capital injection plans, as no income or cash inflows are reported which is critical for operational continuity.
• Review the director’s plans or strategy for returning the company to profitability or addressing the negative equity position.
• Verify absence of director disqualifications or any adverse regulatory actions beyond the filings provided.