Company Number: 13672440

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company exhibits a weak liquidity position with net current liabilities and negative working capital in prior years, though a modest improvement is noted in the latest year. The small scale of operations, limited asset base, and continued losses raise concerns about solvency and operational sustainability.

2. Key Concerns:

• Negative Working Capital and Liquidity Constraints: For the years ending 2022 and 2023, net current assets were significantly negative (£-4,263 and £-1,971 respectively), indicating cash flow pressures and potential difficulty meeting short-term obligations. Although improved in 2024, the net current liabilities remain negative.
• Volatile and Negative Equity Position: The company had negative shareholders' funds in 2022 and 2023 (£-965 and £-865), only turning positive recently (£748) but still representing a very modest net asset base relative to liabilities. This suggests historical losses and weak capitalisation.
• Minimal Operational Scale and Single Employee: With only one employee at year-end 2024 and limited tangible assets (£2,719), the business scale is very small, potentially limiting operational resilience and growth prospects in a competitive real estate agency market.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with accounts and confirmation statement filings, indicating good regulatory compliance and governance.
• Improved Financial Position in 2024: The company moved from negative net assets and working capital to a small positive net asset position (£748) and reduced net current liabilities, signaling some operational improvement or capital injection.
• Clear Ownership and Management: The company is controlled by a single director and shareholder with no reported disqualifications or governance issues, supporting stable management oversight.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the recent improvement in net assets and cash position—whether due to operational profitability, capital injection, or other short-term measures.
• Review detailed profit and loss accounts (not filed) to assess revenue trends, margins, and recurring profitability to understand operational viability.
• Confirm the adequacy of working capital facilities and any contingent liabilities or off-balance-sheet commitments, especially given historical liquidity issues.
• Examine potential related party transactions or director loans that may have influenced the financial position.
• Assess market positioning and client base given the small size and single employee count, to evaluate growth prospects and risk of business failure.