Company Number: 13191867

Analysis Date: 2025-07-19 12:53 UTC

1. Risk Rating: MEDIUM
   The company shows a very minimal equity base (£100 share capital and shareholders’ funds) with significant liabilities (£236,250) that offset its current assets. While it is not in overdraft or insolvent, the balance sheet structure suggests financial leverage and tight net asset positioning, which poses a moderate solvency and liquidity risk typical for an early-stage property-related entity.

2. Key Concerns:

• Minimal Equity Base: Shareholders’ funds are only £100 despite asset values and liabilities exceeding £236k, indicating potential undercapitalization or reliance on debt-like financing.
• Substantial Long-Term Creditors: The presence of creditors falling due after more than one year for £236,250 exactly matches the difference between current assets and liabilities, suggesting the company is highly leveraged or dependent on external financing to fund its asset base.
• Lack of Profit and Reserve Accumulation: No indication of retained earnings or P&L reserves, which may highlight limited profitability or reinvestment capacity to strengthen financial stability.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Net current assets of £236,250 indicate the company can cover its short-term obligations without distress at the balance sheet date.
• Timely Filing and Compliance: Both accounts and confirmation statements are filed on time with no overdue filings, demonstrating good regulatory compliance and governance.
• Stable Directorship and Ownership: Single director with direct involvement and a clear PSC controlling 25-50% shares and voting rights, suggesting stable management and ownership structure.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£236,250) to understand repayment obligations, interest rates, and impact on cash flows.
• Review cash flow statements and profit & loss accounts (not provided) to assess operational sustainability and ability to service debts.
• Clarify the valuation basis for current and fixed assets (£378,623) to determine asset quality and potential liquidity in a distressed scenario.
• Assess the business model viability given limited employees (1) and early stage, especially in property letting and development sectors.
• Confirm the director’s and PSC’s experience and financial backing to support ongoing operations.