Company Number: 14086059

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: MEDIUM
   The company shows persistent net liabilities, indicating negative shareholders' funds, which signals some solvency risk. However, it maintains positive net current assets and is not overdue on filings, partially mitigating concerns. The presence of long-term bank loans and no employees also raises questions about operational scale and cash flow.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are negative (£-9,586 as of 2024), indicating accumulated losses or undercapitalization.
• Long-term Debt Burden: Bank loans of £159,935 exceed current assets and there is no growth in net assets year-over-year, raising concerns about debt servicing capacity.
• No Employees and Limited Operations: The company has reported zero employees, which may point to reliance on directors or contractors and raises questions about operational sustainability.

3. Positive Indicators:

• Timely Compliance: Accounts and confirmation statements are filed on time with no overdue notices, indicating good regulatory compliance.
• Stable Debtors and Creditors: Debtors (intercompany loans) and creditors have held steady, which may suggest stable related-party financing arrangements.
• Small Company Audit Exemption: The company’s use of the small company regime reduces administrative burden and may indicate limited complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the intercompany loan (£151,879) to assess recoverability and impact on liquidity.
• Review cash flow statements and forecasts to understand the company’s ability to service its bank loan and meet ongoing obligations.
• Clarify the business model and operational setup given zero employees and the sector (real estate management and letting).
• Confirm any off-balance sheet liabilities or contingent risks not apparent from the filleted accounts.
• Assess directors’ plans for returning the company to positive equity and operational growth.