Company Number: 14378446

Analysis Date: 2025-07-29 17:24 UTC

1. Risk Rating: MEDIUM
   The company shows a significant increase in fixed assets (investment properties), but current liabilities have grown sharply, almost equaling the total assets less current liabilities, which raises concerns about near-term solvency and liquidity. The net asset position remains positive but has declined year-on-year, indicating some financial strain.

2. Key Concerns:

• High Current Liabilities vs. Low Current Assets: Current liabilities at £771,758 far exceed current assets of only £8,913 as at 30/09/2024, implying potential liquidity stress and difficulty meeting short-term obligations.
• Heavy Reliance on Investment Property Assets: The company's asset base is almost entirely investment properties (£800,940), with minimal liquid assets, which may affect operational cash flow and financial flexibility.
• Decline in Net Assets: Net assets decreased from £33,471 in 2023 to £28,559 in 2024, signaling a reduction in equity and potential erosion of financial stability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Stable Shareholders’ Equity and Revaluation Reserve: Share capital remains constant, and the revaluation reserve is steady at £27,011, supporting a level of capital stability.
• Experienced Management Team: Four directors with significant control suggest committed leadership and clear governance structure.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities (£771,758) to assess repayment schedules and any covenants or risks associated.
• Review cash flow statements and operating performance (not provided) to evaluate the company’s ability to generate operational cash and service liabilities.
• Confirm the valuation methods and market assumptions underpinning the investment property revaluation reserve to assess asset quality and realizable value.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in abridged accounts.
• Verify the absence of director disqualifications or compliance issues beyond filings, given the relative youth of the company (incorporated 2022).