Company Number: 13482553

Analysis Date: 2025-07-19 12:46 UTC

1. Risk Rating: HIGH

Justification: The company shows a negative net asset position as of the latest accounts (2024), indicating liabilities exceed assets. Current liabilities are substantial relative to current assets, and long-term creditors exceed total assets less current liabilities. This points to solvency concerns despite reported net current assets, likely reflecting classification issues or timing differences.

2. Key Concerns:

• Negative Net Assets: The balance sheet as of June 2024 reports net assets of -£186,536, a deterioration from prior years’ positive but minimal net assets, signaling potential insolvency risk.
• High Long-Term Liabilities: Creditors due after more than one year are £2.29 million against total assets less current liabilities of £2.10 million, suggesting heavy leverage and possible cash flow strain to service debt.
• Limited Operating History and Scale: Incorporated in 2021 and classified as a micro-entity with only two employees, the company has a short track record and small scale, increasing operational risk and limiting financial flexibility.

3. Positive Indicators:

• Current Assets Exceed Short-Term Creditors: Current assets of £2.27 million outweigh current liabilities of £221,487, indicating an ability to meet short-term obligations.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, reflecting regulatory compliance and good governance in reporting.
• Experienced Directors: Both directors have been in place since incorporation and hold significant ownership, which can align interests and promote stable management.

4. Due Diligence Notes:

• Clarify the nature and terms of long-term creditors (£2.29m): Identify whether these are related party loans, bank debt, or other financing, and the repayment schedule.
• Review cash flow statements and profit/loss accounts: Financial statements provided do not include profitability or cash flow data; these are critical to assess ongoing viability.
• Investigate any contingent liabilities or off-balance sheet obligations that may affect financial health.
• Understand business model and revenue sources within the real estate buying and selling sector to assess sustainability and market exposure.
• Confirm any related party transactions given director shareholdings and potential associated lending arrangements.