Company Number: 15226661

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: MEDIUM
   The company exhibits a moderate risk profile due to significant long-term liabilities relative to its net assets and minimal current assets, despite being a newly incorporated micro-entity with no overdue filings.

2. Key Concerns:

• Liquidity Concerns: Current assets (£116) are negligible compared to current liabilities (£21,287), resulting in negative net current assets (-£20,673), which may indicate short-term cash flow difficulties.
• Solvency Risk: There are substantial long-term creditors (£650,000) relative to net assets (£21,055), suggesting a high leverage position that could impair the company's ability to meet obligations without additional capital or cash inflows.
• Operational Scale: The company operates with only one employee (the director) and limited financial history, making sustainability and operational stability difficult to assess at this early stage.

3. Positive Indicators:

• Compliance Status: All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices, indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, allowing clear lines of accountability.
• Fixed Asset Base: The company holds significant fixed assets (£692,328), which may provide collateral or operational capacity in its real estate letting business.

4. Due Diligence Notes:

• Investigate the nature and terms of the £650,000 long-term creditors to understand repayment schedules, interest obligations, and any covenants.
• Clarify the company's business model and revenue generation plans given the minimal current assets and negative working capital.
• Review contractual arrangements and any related party transactions involving the principal director to assess governance and financial risk.
• Monitor future filings for improvements in liquidity and profitability metrics as the company matures.