Company Number: 13266471

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to large current liabilities exceeding current assets by a substantial margin and high director loans. Net asset value is marginal and only slightly positive after several years, indicating fragile financial health.

2. Key Concerns:

• Negative net current assets for multiple years (approximately -£240k to -£250k), indicating poor short-term liquidity and potential cash flow problems.
• Substantial related party debt: £412k owed to the director as at 31 March 2024, which may signal reliance on director funding instead of operational cash flow.
• High long-term liabilities (£670k+), which may pressure solvency despite sizable fixed assets; the nature and terms of these liabilities are unclear and could be a risk.

3. Positive Indicators:

• The company owns significant fixed assets valued around £927k, which supports the balance sheet and may provide some collateral value.
• No overdue filings or compliance issues; accounts and confirmation statements are submitted on time, showing regulatory compliance.
• The business is active and appears operational in real estate management and letting, a potentially stable industry segment.

4. Due Diligence Notes:

• Investigate the composition and repayment terms of current and non-current liabilities to assess potential default risk.
• Review cash flow statements and operational income to determine if the company generates sufficient cash to meet short-term obligations without director loans.
• Clarify the nature of director's loans: are they formal loans, equity contributions, or other arrangements?
• Consider the market value and liquidity of fixed assets to understand how quickly they could be realized if needed.
• Assess the company's revenue streams and profitability trends, which are not provided here, to evaluate operational sustainability.