Company Number: 13437227

Analysis Date: 2025-07-29 16:40 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders’ funds, indicating ongoing solvency and liquidity issues. The creditors balance closely matches the debtors and current assets but exceeds net assets, signaling financial stress.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The balance sheet reveals a small but consistent working capital deficit and negative equity position over multiple years. This suggests the company is relying on creditor financing, which may not be sustainable.
• High Director’s Current Account Creditors: Creditors mainly comprise directors’ current accounts (£401k+), indicating the company depends on director loans or unpaid amounts. This could pose risks if directors withdraw support.
• Minimal Cash Balances: Cash on hand is negligible (£553 at year-end 2023), which may impair the company’s ability to meet short-term obligations promptly, increasing liquidity risk.

3. Positive Indicators:

• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, with no overdue filings or regulatory concerns, indicating good corporate governance in compliance terms.
• Stable Debtor Position: Debtors remain steady at around £400k, suggesting predictable receivables or intercompany balances.
• Active Status and Recent Incorporation: The company is active and relatively new (incorporated in 2021), implying the business is still in early stages with potential for restructuring or capitalization.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £400,198 debtors balance, as it constitutes nearly all current assets. Confirm if this is intercompany debt or trade receivables.
• Clarify the terms and sustainability of the directors’ current account creditors, including repayment plans or potential calls for cash from directors.
• Review the company’s cash flow forecasts and plans for improving liquidity or capital structure given the negative net asset position.
• Confirm business model viability in the real estate letting sector (SIC 68209) and assess revenue streams and profitability metrics, which are not disclosed here.
• Assess any contingent liabilities or off-balance sheet arrangements that might exacerbate financial risk.