Company Number: 12630964

Analysis Date: 2025-07-29 14:45 UTC

1. Risk Rating: MEDIUM
   The company shows a positive trend in net assets and net current assets, indicating incremental improvement in equity and working capital. However, the high level of non-current liabilities relative to net assets and current liabilities close to current assets raise concerns about leverage and liquidity.

2. Key Concerns:

• The company carries significant long-term liabilities (£365,763) nearly equal to fixed assets (£350,764), suggesting high leverage and potential solvency risk if asset values decline or income streams falter.
• Current liabilities (£13,155) are substantial relative to current assets (£43,462), which could pressure short-term liquidity depending on actual cash flow timing and collection efficiency.
• The micro-entity status limits the detail and scope of financial disclosures, reducing transparency and making it harder to fully assess operational sustainability or contingent risks.

3. Positive Indicators:

• Net assets have nearly doubled from £9,407 in 2023 to £16,587 in 2024, showing retained earnings or capital injections improving shareholder equity.
• Net current assets have increased significantly, from £17,556 to £31,586, enhancing short-term financial buffer.
• The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Directors have stable appointments with no reported disqualifications or regulatory issues.

4. Due Diligence Notes:

• Investigate the nature of the long-term liabilities: terms, interest rates, maturity profiles, and covenants to understand solvency risk.
• Obtain cash flow statements or bank statements to verify liquidity beyond the balance sheet snapshot.
• Review rental income streams and occupancy rates related to the real estate assets to assess operational sustainability and revenue stability.
• Confirm the fair value of fixed assets to ensure balance sheet accuracy, considering market conditions.
• Understand the relationship and transactions between the two directors and the company given their significant ownership and control.