Company Number: 13911297

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (2022) and small in scale (micro entity) with limited financial data. Its net current assets have declined from a positive £99 in 2023 to a negative £2 in 2024, indicating a deterioration in liquidity. Although net assets remain stable at £100, current liabilities have increased significantly, which raises concerns about short-term solvency.

2. Key Concerns:

• Liquidity deterioration: The current liabilities increased sharply from £1 to £102 while current assets remained flat at £100, resulting in negative net current assets. This suggests potential cash flow stress or timing issues in meeting short-term obligations.
• Minimal capital base: Share capital is nominal (£100), limiting financial buffer against operational risks or unexpected liabilities.
• Limited operational history and scale: With only two employees and micro-entity status, the company may lack operational resilience and diversification, increasing vulnerability to market or business risks.

3. Positive Indicators:

• Compliance with filings: No overdue annual accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Stable net assets: Despite liquidity pressures, net assets and shareholders’ funds remained constant at £100, suggesting no erosion of capital to date.
• Single controlling shareholder: Mr. Ilan Almagor’s 75-100% control may facilitate decisive management and streamlined decision-making.

4. Due Diligence Notes:

• Investigate reasons for the significant increase in current liabilities and whether this is a timing issue or indicative of mounting debts.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet snapshots.
• Clarify nature and collectability of current assets (e.g., cash, receivables) to determine actual liquid resources available.
• Understand business model and revenue streams since operational scale is minimal and the SIC code indicates real estate letting—verify asset ownership and income stability.
• Confirm no director disqualifications or regulatory issues beyond current data.