Company Number: NI689213

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

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over the last three reported years, indicating solvency concerns. The micro-entity status and lack of audit reduce transparency, and the business has yet to demonstrate an ability to generate positive working capital or equity.

2. Key Concerns:

• Negative Net Assets: The company has net assets of approximately -£36,726 as of the last accounts, worsening slightly from previous years, signaling erosion of shareholder value and potential insolvency risk.
• Severe Working Capital Deficit: Current liabilities (£219,719) far exceed current assets (£442), resulting in net current liabilities of about -£219,277, which raises doubts over the company’s ability to meet short-term obligations as they fall due.
• Limited Financial Disclosure: The company has not prepared audited accounts or filed profit and loss statements, limiting insight into profitability, cash flow, and operational performance.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings with no overdue reports, suggesting regulatory compliance and governance discipline.
• Stable Fixed Assets: Fixed assets have remained steady at £182,551 for three years, indicating some tangible asset backing, although these do not currently offset liabilities.
• Small Workforce: Maintaining an average of 2 employees suggests limited overheads, potentially allowing for operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to assess their realizable value and potential to cover liabilities.
• Obtain management accounts or cash flow statements to evaluate ongoing operational cash generation and the plan to resolve the negative equity position.
• Review related party transactions or contingent liabilities that may impact financial stability.
• Clarify the business model and revenue streams given the SIC code indicating residents property management to understand sustainability.
• Confirm any external funding or shareholder support to cover working capital deficits.