Company Number: 14323256

Analysis Date: 2025-07-29 18:35 UTC

1. Risk Rating: HIGH

The company shows significant solvency concerns with negative net assets (shareholders’ funds) of approximately £2,437 as of the latest accounts date. The current liabilities substantially exceed the current assets, indicating potential difficulties in meeting short-term obligations. The small scale of operations and persistent negative equity raise material doubts about financial stability.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position has worsened from -£1,187 to -£2,437 over two years, signaling an erosion of capital and potential insolvency risk.
• Working Capital Deficit: Current liabilities (£2,467) vastly exceed current assets (£30), indicating poor liquidity and possible cash flow constraints.
• Lack of Tangible Assets: The micro-entity balance sheet suggests minimal fixed or tangible assets, which limits collateral value and financial resilience.

3. Positive Indicators:

• Compliance: No overdue filings or confirmation statements, indicating adherence to regulatory requirements.
• Active Status: The company remains active and is not in liquidation or administration.
• Stable Employment: The company reports an average of 3 employees, showing some operational continuity.

4. Due Diligence Notes:

• Examine underlying causes of persistent negative equity: Review detailed notes or management commentary on losses or liabilities not visible in summary accounts.
• Assess cash flow statements and creditor repayment schedules: To understand liquidity management and short-term solvency.
• Investigate nature of current liabilities: Determine if these are trade payables, loans, or contingent liabilities.
• Director backgrounds and commitments: Check for any director disqualifications or conflicts that may impact governance.
• Business model sustainability: Given the SIC code (real estate letting/operating), assess property portfolio and rental income stability.