Company Number: 14406044

Analysis Date: 2025-07-29 15:07 UTC

1. Risk Rating: MEDIUM
   The company shows recent improvement in net current assets and shareholders' funds after prior years of negative equity. However, absolute asset values remain low, and liabilities are significant relative to current assets, indicating some solvency and liquidity risk.

2. Key Concerns:

• Prior negative equity position (FY 2023 & 2024) indicates historical financial difficulty and potential accumulated losses.
• Current liabilities remain high (£13,345) compared to modest current assets (£16,567), reflecting tight working capital and potential liquidity constraints.
• Low cash balance (£2,017) limits ability to meet short-term obligations promptly without additional funding or cash inflows.

3. Positive Indicators:

• The company returned to positive net current assets (£3,222) and shareholders' funds (£3,222) in FY 2025, suggesting a turnaround or capital injection.
• No overdue filings or compliance issues; the company is current with accounts and confirmation statement submissions, minimizing regulatory risk.
• Ownership and control concentrated in one director (Mr. Andrew David Jackson), which may support swift decision making and operational continuity.

4. Due Diligence Notes:

• Investigate nature and source of improvements in FY 2025 financials, particularly whether positive equity reflects operational profit or capital injection.
• Review detailed cash flow statements if available to assess liquidity trends and cash management practices.
• Examine creditor aging and payment terms to understand pressure from current liabilities and supplier relationships.
• Clarify the composition and valuation of "Stocks" (£14,250) as the company is a real estate agency; unusual for such a business and may affect asset realizability.
• Consider director’s background and financial capacity given sole control and shareholding.