Company Number: 12774251

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: MEDIUM

The company shows a solid asset base and recent profitability improvements but current liability levels and net current asset deficits warrant caution. The increase in investment property value and net assets is positive, yet the sizeable secured borrowing and ongoing net current liabilities highlight liquidity and solvency risks.

2. Key Concerns:

• Net Current Liability Position: The company has persistent negative working capital (net current assets of -£176,926 in 2024), indicating potential short-term liquidity pressures.
• Significant Secured Borrowings: The £810,000 bank loan secured against company assets is material relative to equity and may constrain operational flexibility.
• Limited Employee Base and Revenue Disclosure: With only one employee (the director) and no disclosed turnover or profit figures, operational sustainability and revenue generation are unclear, increasing risk from dependence on limited resources.

3. Positive Indicators:

• Strong Asset Growth: Investment property revaluation increased asset base significantly to £1.4 million, supporting net asset position of £413,115.
• Improvement in Net Assets: Net assets rose sharply from £9,355 in 2023 to £413,115 in 2024, reflecting either retained earnings or revaluation gains.
• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements indicate good regulatory compliance and governance.

4. Due Diligence Notes:

• Review Cash Flow and Profit & Loss Details: The abridged accounts omit P&L data; obtaining full financials to assess revenue streams, profitability, and cash flow is essential.
• Examine Loan Terms and Covenants: Understanding the secured lending arrangements, repayment schedule, and covenants will clarify solvency risks.
• Assess Tenant Occupancy and Lease Terms: As the company operates in real estate letting, reviewing tenancy agreements, occupancy rates, and rental income stability is critical for operational sustainability.