Company Number: 14719466

Analysis Date: 2025-07-29 18:46 UTC

1. Risk Rating: HIGH
   The financial data reveals significant liquidity and solvency concerns. Current liabilities exceed current assets by approximately £1.94 million, indicating a substantial working capital deficit. Net assets stand at a nominal £291, which is minimal relative to the scale of current liabilities and fixed assets.

2. Key Concerns:

• Liquidity Shortfall: The company’s current liabilities (£2,000,836) vastly exceed current assets (£60,854), suggesting potential difficulty in meeting short-term obligations.
• Minimal Net Equity: Shareholders’ funds are only £291, reflecting very thin capitalization and limited financial buffer against losses or adverse events.
• New Company with Limited Operational History: Incorporated in March 2023 with only one employee and micro-entity accounting, there is limited evidence of operational stability or revenue generation.

3. Positive Indicators:

• Substantial Fixed Assets: The company holds fixed assets valued at £1.94 million, which may represent real estate holdings aligned with its SIC code (other letting and operating of own or leased real estate). This asset base could provide collateral value.
• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Balanced Shareholder Control: Three directors each hold between 25-50% share control, suggesting a balanced governance structure without dominance by a single individual.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Verify the composition, ownership, and market value of fixed assets to assess realizability and potential to cover liabilities.
• Source and Terms of Current Liabilities: Investigate the nature of nearly £2 million current liabilities, including creditor identity, repayment terms, and any contingent liabilities.
• Cash Flow and Revenue Generation: Obtain recent trading accounts or cash flow statements to determine operational cash inflows and sustainability.
• Director Background Checks: Although no disqualification or compliance issues are evident, further due diligence on directors’ experience and reputational standing in real estate is advisable.
• Business Model and Contracts: Understand the company’s leasing arrangements or real estate operations, client base, and pipeline to evaluate operational viability.