Company Number: 13863818

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with substantial current liabilities vastly exceeding current assets and net assets at or near zero. This suggests a precarious financial position and potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of approximately £81,365 persist over multiple years, indicating ongoing liquidity strain.
• Zero Net Assets / Shareholders’ Funds: Net assets decreased to zero in the latest period from £1 previously, highlighting erosion of equity and potential insolvency risk.
• Significant Long-Term Debt: Creditors falling due after one year amount to £188,250, an amount equal to fixed assets and not matched by equity, raising concerns about the company’s ability to service or refinance this debt.

3. Positive Indicators:

• Stable Fixed Assets: The company holds fixed assets valued at £269,615 consistently, which could provide some collateral value.
• No Overdue Filings: Accounts and confirmation statements are up to date and filed on time, reflecting compliance with regulatory requirements.
• Single Director with Relevant Experience: The sole director is a solicitor, potentially providing sound governance and legal oversight.

4. Due Diligence Notes:

• Examine Nature and Terms of Creditors: Detailed review of the £188,250 creditors due within and beyond one year is necessary to understand the repayment profile and risks.
• Assess Cash Flow and Funding Sources: Investigate how ongoing liquidity shortfalls are managed—e.g., director loans, shareholder funding, or external financing.
• Review Business Model and Revenue Generation: Limited information is available on income or operational performance; understanding the sustainability of the real estate letting operations is crucial.
• Confirm No Director or Related Party Transactions: Given the sole director owns 75-100% shares, scrutiny of related party transactions is important to assess potential conflicts or financial support mechanisms.