Company Number: 13885295

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   Justification: The company has net liabilities and negative shareholders' funds over the last two reported years, indicating insolvency on a balance sheet basis. Negative current assets and net current liabilities suggest a liquidity shortfall with more immediate liabilities than assets. The presence of director loans as creditors indicates reliance on related-party financing to meet obligations, increasing risk.

2. Key Concerns:

• Solvency risk: Persistent negative net assets (£-6,131 in 2024, £-12,908 in 2023) show the company’s liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity constraints: Current liabilities (£6,954) exceed current assets including cash (£823 net current assets), indicating potential cash flow difficulties to cover short-term debts.
• Reliance on director loans: The company’s creditors include loans from directors (£6,455), implying external financing is insufficient and the business depends on directors’ financial support, which may not be sustainable.

3. Positive Indicators:

• No overdue filings: The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence and governance in that regard.
• Active website and operational status: The company has an active website and is registered as active, suggesting ongoing business activities.
• Directors with control: Two directors hold significant control and are actively engaged, which may bode well for operational continuity and decision making.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and repayment plans to assess potential future cash requirements or restructuring needs.
• Review underlying business model sustainability and cash flow forecasts since current financials show ongoing losses and negative net assets.
• Confirm if there are any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Clarify the negative debtor balances (£-3,596 in 2024) which may indicate accounting anomalies or provisions requiring explanation.
• Assess market position and prospects within the real estate sector, especially given the SIC codes relating to letting and property management.