Company Number: 12500636

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

1. Risk Rating: HIGH
   Justification: The company exhibits persistent and growing negative net assets and net current liabilities over several years, indicating poor solvency and liquidity positions. The lack of fixed assets and minimal current assets relative to liabilities suggests an inability to meet short-term obligations. Absence of employees and minimal operational activity raises concerns about operational sustainability.

2. Key Concerns:

• Significant Negative Net Assets: Net liabilities have increased from approximately £3,742 in 2020 to over £32,000 in 2024, indicating cumulative losses and erosion of shareholder equity.
• Negative Working Capital: Current liabilities substantially exceed current assets each year (e.g., £32,225 liabilities vs. £15 assets in 2024), implying severe liquidity constraints and risk of insolvency.
• Operational Inactivity: The company reports zero employees in the latest period, minimal assets, and no audit exemption triggered by turnover thresholds, suggesting minimal business activity and uncertain revenue generation capacity.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Stable Directorship: Two directors have been continuously appointed since incorporation with no public records of disqualification, suggesting stable management oversight.
• Clear Industry Classification: The company’s SIC codes relate to real estate management and letting, which are established business sectors, providing a context for potential future operations.

4. Due Diligence Notes:

• Investigate the nature and origin of the increasing liabilities and whether these include inter-company loans, director loans, or external debts.
• Obtain management accounts or cash flow forecasts to assess current operational status and plans to return to solvency.
• Clarify reasons for zero employees and minimal assets, including whether the company is dormant operationally but kept active for strategic purposes.
• Review director declarations or board minutes for insight on financial support, restructuring plans, or potential risk mitigation measures.
• Confirm absence of contingent liabilities or pending legal actions that may impact financial stability.