Company Number: 13910242

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a recovery from significant negative net current assets and shareholders' funds in 2023 to positive figures in 2024. However, the absolute cash and asset levels remain very low, and the company is newly incorporated with a limited operating history. These factors suggest moderate solvency risk and liquidity concerns.

2. Key Concerns:

• Low Asset Base and Working Capital: Current assets are only £3,899 with cash nearly equal to this amount, limiting financial flexibility.
• Previous Negative Net Current Assets and Shareholder Deficit: The company reported net current liabilities of £5,303 and negative shareholders’ funds of £5,304 in the prior financial year, indicating prior financial distress.
• Small Scale and Single Director Control: The company is micro-sized with only one director who owns 75-100% of shares and voting rights, potentially raising governance and operational risks.

3. Positive Indicators:

• Improved Financial Position in Latest Year: Net current assets rose to £1,973 and shareholders’ funds to £1,973 with a reported profit of £7,776 after a £500 dividend, indicating operational improvement.
• Compliance with Filing Requirements: No overdue filings of accounts or confirmation statements, showing regulatory compliance and good governance practices.
• Clear Industry Focus: The company operates in real estate activities, specifically letting and buying/selling own real estate, which can generate steady cash flows if managed prudently.

4. Due Diligence Notes:

• Verify Revenue Streams and Profit Sustainability: The accounts do not include the income statement; reviewing detailed financials and business plans would clarify how profits are generated and whether growth is sustainable.
• Examine Cash Flow Statements: To assess liquidity and ability to meet short-term obligations beyond the end-of-year cash snapshot.
• Understand Share Capital and Funding Sources: The company has only £1 in called-up share capital; confirm if there are additional funding arrangements or shareholder loans supporting operations.
• Director Background and Related Party Transactions: Given sole control by one director, review any related party transactions or conflicts of interest.
• Property Asset Valuation and Exposure Risks: Confirm asset valuations and any liabilities associated with real estate holdings.