Company Number: 14371203

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities worsening from -£15,876 in 2023 to -£48,343 in 2024. Current liabilities greatly exceed current assets, indicating severe liquidity stress and inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities have more than tripled within one year, signaling continued losses or increased debt burden.
• Severe Working Capital Deficit: Current liabilities (£50,038) vastly exceed current assets (£3,100), resulting in net current liabilities of -£46,938, which poses immediate liquidity risks.
• No Employees and Minimal Fixed Assets: The absence of employees and very low fixed assets (£3,262) raise questions about operational capacity and sustainability of business activities in the real estate agency sector.

3. Positive Indicators:

• Compliance with Filing Obligations: Accounts and confirmation statements are filed on time with no overdue filings, indicating adherence to regulatory requirements.
• Established Control Structure: Two named individuals hold significant control with clear appointments as director and secretary, showing governance structure is in place.
• Micro-Entity Reporting: The company benefits from simplified filing requirements, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate underlying reasons for the deteriorating financial position and negative net assets, including any off-balance sheet liabilities or contingent risks.
• Review cash flow statements and creditor terms to assess short-term liquidity management and risk of insolvency.
• Understand business model and revenue generation given lack of employees and minimal assets, especially how the company operates as a real estate agency.
• Verify related party transactions or director loans that may impact financial health.
• Confirm absence of director disqualifications or regulatory issues through background checks on key individuals.