Company Number: 12666212

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, primarily due to its very high current liabilities relative to current assets and modest net assets. The net current liabilities position indicates acute short-term funding pressure.

2. Key Concerns:

   • Severe Liquidity Deficit: Current liabilities exceed current assets by approximately £2.6 million for the last two reported years, signaling potential cash flow difficulties in meeting short-term obligations.
   • High Leverage and Debt Burden: The company carries substantial creditors both within one year (~£2.65 million) and beyond one year (~£0.52 million) compared to relatively low shareholders’ funds (~£40k), indicating a highly leveraged balance sheet.
   • Limited Financial Disclosure and No Audit: As a micro-entity, the company has limited filing requirements and has elected not to include a profit and loss statement, restricting visibility into operational performance and cash flow generation.

3. Positive Indicators:

   • Stable Fixed Asset Base: Fixed assets have remained relatively stable at over £3.1 million across the last three years, suggesting some asset backing.
   • Compliance with Filing Deadlines: The company is currently up to date with accounts and confirmation statement filings, indicating regulatory compliance in terms of submissions.
   • Consistent Management: The same two directors have been in place since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

   • Review detailed creditor composition to understand the nature and terms of the short and long-term liabilities. Identify if any restructuring or refinancing has occurred or is planned.
   • Obtain management accounts or cash flow statements to assess operational cash generation capability and liquidity management.
   • Investigate the underlying business model and revenue streams given the SIC code "Other letting and operating of own or leased real estate" to determine asset utilization and income stability.
   • Confirm any related party transactions or director loans that could impact the financial position.
   • Consider external market conditions affecting real estate holdings which may influence asset valuations and rental income.