Company Number: 14126125

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: HIGH

The company shows signs of financial fragility with minimal net assets (£2) and a history of negative shareholders' funds (£-4,902) in the prior year. The current liabilities nearly equal current assets, indicating extremely tight working capital and potential liquidity stress. Being a micro-entity with limited financial disclosure restricts detailed analysis but the available data points to elevated solvency and liquidity risk.

2. Key Concerns:

• Negative Equity History: The company had negative shareholders' funds in 2023, which only marginally improved to a positive £2 in 2024, indicating very weak capitalization and potential insolvency risk.
• Minimal Working Capital: Current assets barely cover current liabilities (£2,203 vs £2,201), leaving no margin for operational disruptions or unexpected expenses.
• Limited Financial Transparency: As a micro-entity, the company is exempt from audit and does not provide a profit and loss account, limiting visibility into profitability and cash flow generation.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed timely, indicating compliance with statutory requirements.
• Active Status with Directors in Place: The company is active with two current directors who have clear control and responsibility, suggesting stable governance structure.
• Slight Improvement in Net Assets: Movement from negative to marginally positive net assets year-over-year shows some financial stabilization, albeit minimal.

4. Due Diligence Notes:

• Review detailed cash flow statements or bank statements if available to assess liquidity beyond the balance sheet snapshot.
• Investigate the nature of current liabilities to determine if any short-term debts are due imminently and the company’s ability to service these.
• Understand the business model and revenue streams, especially given the SIC code for letting real estate, to evaluate sustainability and growth prospects.
• Verify the background and track record of the directors, although no disqualifications or alerts are apparent in the data.
• Consider the impact of the company’s micro-entity reporting exemptions on the quality of financial information and explore obtaining additional management accounts if possible.