Company Number: 13816093

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: MEDIUM
   The company presents a mixed financial position with very limited net assets (£2,727 as of 31 March 2024) against significant long-term liabilities (£268,143). While it remains active and compliant with filing requirements, the scale of current liabilities relative to current assets signals some short-term liquidity risk. The concentration of control in a single director and shareholder is noted but not inherently alarming.

2. Key Concerns:

• Solvency and Leverage: The company's fixed assets are substantially offset by long-term creditors, leaving minimal net equity, which could pose solvency challenges if asset values fluctuate or liabilities crystallize unexpectedly.
• Liquidity Constraints: Current assets (£3,912) are severely outweighed by current liabilities (£268,143), indicating potential difficulties in meeting short-term obligations without additional funding or asset liquidation.
• Operational Scale and Sustainability: The company is a micro-entity with only one employee and limited current assets, raising questions about its operational capacity and revenue generation to service liabilities and sustain growth.

3. Positive Indicators:

• Compliance and Filing: The company is up to date with statutory filings (accounts and confirmation statement), reducing regulatory risk.
• Asset Base Stability: Fixed assets remain consistent at £277,715 over multiple reporting periods, suggesting stable underlying asset value.
• Clear Ownership and Governance: A single director and 75-100% controlling shareholder simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£268k+), including repayment schedules, interest rates, and any covenants or default risks.
• Assess the valuation and liquidity of fixed assets (£277k) to determine their potential to cover creditor claims if necessary.
• Review cash flow statements or management accounts (if available) to understand operational cash generation and any funding requirements.
• Confirm the business model's viability given the micro-entity classification, single employee, and real estate management industry characteristics.