Company Number: 13909862

Analysis Date: 2025-07-29 19:02 UTC

1. Risk Rating: MEDIUM
   The company shows positive net asset growth but persistent negative net current assets indicate liquidity constraints. The micro-entity status limits detailed financial disclosure, contributing to moderate uncertainty.

2. Key Concerns:

• Negative net current assets (~£47k deficit) suggest potential short-term liquidity issues to meet current liabilities of £50k+.
• Substantial long-term liabilities (£161k) relative to net assets (£6.7k) indicate high gearing and potential solvency pressure if asset values decline.
• Limited equity base (£2 share capital and small retained earnings) restricts financial flexibility and buffers against operational or market shocks.

3. Positive Indicators:

• Consistent fixed asset base (£215k) reflects stable investment in property assets aligned with core real estate letting activities.
• The company is compliant with filing deadlines for accounts and confirmation statements, indicating proper regulatory adherence.
• Directors have been in place since incorporation with no public disqualifications, suggesting stable governance.

4. Due Diligence Notes:

• Investigate nature and terms of the £161k long-term creditors to assess refinancing risk and covenant requirements.
• Review underlying cash flow statements or management accounts to understand liquidity management and operational cash generation.
• Confirm valuation and condition of fixed assets to verify asset security backing liabilities.
• Assess future rental income streams and occupancy rates to evaluate operational sustainability.
• Verify no undisclosed contingent liabilities or related party transactions impacting financial position.