Company Number: 12514805

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and net assets in the latest year, indicating an improvement in solvency. However, the presence of significant long-term creditors and a very small equity base relative to liabilities introduces moderate risk. The micro-entity status and lack of employees point to a small-scale operation with limited operational data.

2. Key Concerns:

• Long-term credit obligations: The company reports £75,708 in creditors due after more than one year as of 2024, which is substantial compared to net assets of £14,465, potentially impacting solvency if cash flows do not cover these obligations.
• Equity volatility and negative net assets in prior year: The company had negative net assets (£-25,707) in 2023, which reversed to positive in 2024. This volatility suggests past financial distress or restructuring that needs clarification.
• Lack of operational scale and employee base: Zero employees and micro-entity classification imply a very lean or possibly dormant operation, raising questions about sustainable revenue generation and cash flows.

3. Positive Indicators:

• Improved liquidity position: Current assets increased significantly from £24,835 in 2023 to £96,276 in 2024, improving net current assets to £90,173, which supports short-term liquidity.
• Timely filing and compliance: The company is current on both accounts and confirmation statement filings, indicating sound regulatory compliance.
• Consistent director presence: The sole director has been in position since incorporation, suggesting management stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment risk and whether these are related party loans or external debt.
• Review cash flow statements or bank statements (if available) to confirm actual liquidity beyond balance sheet figures.
• Clarify the business model and revenue streams, given the absence of employees and the industry classifications related to real estate management and development.
• Understand the cause of negative net assets in 2023 and the actions taken to return to solvency in 2024.
• Confirm if there are any contingent liabilities or off-balance sheet risks not reflected in micro-entity accounts.