Company Number: 12812469

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to large negative net assets and a substantial long-term creditor balance, indicating difficulty in meeting obligations.

2. Key Concerns:

• Persistently negative net assets worsening from -£172,593 in 2022 to -£275,114 in 2023, signaling ongoing losses or accumulated deficits.
• Current liabilities (£74,906) exceed current assets (£9,012), producing a negative net working capital of -£65,894, which suggests liquidity stress.
• Large creditor amounts due after one year (£210,000) remain constant, implying significant debt or obligations that may be burdensome relative to the company's asset base.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, indicating regulatory adherence and operational continuity.
• Micro-entity filing status simplifies reporting but also indicates a small scale business with limited complexity.
• Single director with full ownership may allow for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature of the £210,000 long-term creditors: Are these loans, shareholder advances, or trade payables? Assess repayment terms and any restructuring agreements.
• Review profit and loss trends underlying the worsening net asset position to understand operational performance and cash flow generation capacity.
• Confirm no contingent liabilities or off-balance sheet risks exist beyond the stated disclosures.
• Evaluate the company’s business model in property management and development to assess sustainability and revenue generation given the negative equity.
• Verify director’s ability to continue funding or managing the company given the financial strain.