Company Number: 13278752

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: LOW

Justification: The company demonstrates strong net asset positions consistently over the last five years, with net assets exceeding £1.2 million and positive working capital. There are no overdue filings or indications of regulatory non-compliance. The business appears stable with fixed assets maintained at £1.2 million, suggesting asset-backed operations in real estate letting.

2. Key Concerns:

• Low liquidity levels: Current assets are relatively modest (£26,701 in 2025) compared to fixed assets, which may constrain short-term cash flow flexibility.
• Limited scale of operations: The company operates at micro-entity scale with only two employees and minimal turnover data, which could indicate limited operational diversification.
• Concentrated ownership and control: Two directors hold significant ownership (75% combined) and control, which could pose governance risks if conflicts arise.

3. Positive Indicators:

• Consistent positive net current assets and net asset growth year on year.
• No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Asset base focused on real estate letting, typically providing stable income streams.
• Directors have maintained their positions since incorporation, showing stability in management.

4. Due Diligence Notes:

• Review detailed cash flow statements and income figures to assess operational liquidity beyond balance sheet snapshots.
• Confirm the nature, valuation, and encumbrances (e.g., mortgages) on the £1.2 million fixed assets.
• Investigate the contractual and tenancy arrangements underpinning the letting business.
• Assess the governance structure given the concentrated ownership and whether any related party transactions exist.
• Verify if any contingent liabilities or off-balance-sheet risks are disclosed in fuller accounts or board minutes.