Company Number: 13157520

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: HIGH

Justification: The company exhibits a recurring net liability position with negative net assets (shareholders' funds) of approximately £4,013 as of 31 January 2024, worsening from £6,305 in the previous year. Despite significant fixed assets of £555,525, the current liabilities are disproportionately high at £353,995, which exceeds the total net assets and points to solvency concerns. The micro-entity status and absence of employees suggest limited operational scale and possibly constrained liquidity.

2. Key Concerns:

• Solvency Risk: The balance sheet shows net liabilities, indicating the company’s liabilities exceed its assets, raising doubts about its ability to meet long-term obligations.
• Liquidity Issues: Current liabilities are very high relative to current assets (£1,344), resulting in a negative working capital situation which could impede meeting short-term debts.
• Operational Sustainability: The company has no employees reported, limited current assets, and minimal share capital (£1,000), which may not support ongoing operational requirements or growth.

3. Positive Indicators:

• Fixed Assets Base: The company holds substantial fixed assets (£555,525), presumably real estate, consistent with its industry classification in real estate management and investment.
• Compliance: The company is up to date with filings, including accounts and confirmation statements, indicating adherence to statutory obligations.
• Experienced Management: Directors include an accountant and a person with relevant control and voting rights, potentially ensuring informed governance.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to confirm their liquidity and realizable value in a distress scenario.
• Review the terms and maturity profile of the substantial liabilities (£353,995) both current and long-term to assess the risk of default.
• Examine cash flow statements and any off-balance sheet liabilities or contingent risks not visible in the micro-entity accounts.
• Clarify the business model given no employees and minimal current assets to understand operational viability and revenue generation.
• Confirm if there are any related-party transactions or director loans contributing to the liability position.