Company Number: 12909272

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: MEDIUM
   The company shows a positive turnaround in net assets from a negative position in previous years to a slight positive net asset balance of £8,405 as of 2022, which is encouraging. However, the company has significant long-term liabilities (£1.29M), and current liabilities are relatively high compared to current assets, indicating potential liquidity pressure. The micro-entity status limits the disclosure scope, restricting full assessment.

2. Key Concerns:

• Overdue Accounts Filing: The latest accounts were overdue as of the report date, which may indicate compliance or administrative issues.
• High Long-Term Liabilities: Creditors due after more than one year stand at approximately £1.29M, which is substantial relative to net assets, suggesting leverage risk.
• Negative Operating Activity: The company has no employees, no audit requirement, and minimal current assets, raising concerns about operational scale and sustainability.

3. Positive Indicators:

• Improvement in Net Assets: Net assets improved from a deficit (£-22,084 in 2021) to a positive balance (£8,405 in 2022), indicating some financial recovery or capital injection.
• Stable Fixed Assets Base: Fixed assets increased slightly (£1.15M to £1.22M), suggesting investment in tangible assets or property consistent with its real estate trading SIC code (68100).
• Clear Control Structure: Ownership and control of the company are transparent, with two directors and two PSCs identified, reducing ownership ambiguity.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term liabilities to understand repayment schedules and covenants.
• Confirm the reasons for overdue filing to assess governance and compliance risks and whether this is an isolated or recurring issue.
• Review the company's cash flow statements and any available management accounts to assess liquidity beyond the balance sheet snapshot.
• Understand the company's business model and revenue generation given the absence of employees and limited current assets.
• Verify the relationship and transactions between the directors/PSC and the company, especially with significant related party transactions potentially affecting financial stability.