Company Number: 13260216

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency concerns, with net liabilities reported both in 2023 and 2024, despite some improvement. The large balance of long-term creditors exceeding fixed assets and persistent negative net assets indicate financial distress. The micro-entity filing status limits detailed financial disclosure, increasing uncertainty.

2. Key Concerns:

• Solvency Risk: The company’s net assets remain negative (£-20,178 in 2024), reflecting liabilities that exceed assets, notably long-term creditors surpassing fixed assets (£443,998 vs. £414,932).
• Liquidity Concerns: Current liabilities are substantial relative to current assets, though net current assets are positive in 2024 (£8,888). However, the high level of long-term debt suggests cash flow strain.
• Operational Stability: The business reports only 3 employees (up from zero), indicating recent operational scale-up but limited workforce; the company’s small size and negative equity raise questions about sustainability without additional capital.

3. Positive Indicators:

• Timely Compliance: The company is current on statutory filings with no overdue accounts or confirmation statements, demonstrating good regulatory compliance.
• Asset Base: Significant fixed assets (£414,932) underpin the business, consistent over the years, suggesting tangible resource backing.
• Increasing Net Current Assets: Improvement from £-10,676 shareholders’ funds in 2023 to £20,178 in 2024 indicates some recovery or capital injection.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term creditors to assess risk of default or restructuring needs.
• Review cash flow statements and operational performance metrics (not available in micro-entity accounts) to judge ongoing liquidity and profitability.
• Confirm the source of improved net current assets and shareholder funds—whether from capital contributions, asset revaluation, or operational gains.
• Assess the business model viability given the industry codes related to real estate letting and trading, and the competitive environment.
• Validate director’s and key personnel background to identify any governance risks, noting only one director currently appointed.