Company Number: 13274825

Analysis Date: 2025-07-29 19:33 UTC

1. Risk Rating: MEDIUM
   The company shows a modest increase in net assets but has substantial long-term creditors close to the value of its fixed assets, indicating moderate solvency risk. Current liabilities are minimal or negative in the latest year, suggesting improved short-term liquidity, but overall financial buffers appear thin.

2. Key Concerns:

• High level of long-term creditors (£358k) almost equal to fixed assets (£374k) indicates leveraged position and potential solvency pressure if asset values decline or income reduces.
• Net current assets turned positive recently but remain low (£9k), providing limited working capital to cover short-term obligations or unexpected expenses.
• The absence of a profit and loss account filing limits insight into operational performance, cash flow generation, and sustainability.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statements), indicating compliance and governance discipline.
• Shareholders’ funds have doubled over the last year from £12k to £24k, showing some positive equity growth.
• The business has been operational for four years with consistent fixed asset values, suggesting asset stability and possibly a steady underlying business model.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements or management accounts to assess revenue streams, profitability, and cash flow dynamics.
• Clarify the nature and terms of the long-term creditors to understand repayment schedules, interest obligations, and associated risks.
• Investigate the business model and revenue sources to evaluate operational sustainability in the context of the SIC code (real estate letting and operating).
• Review director backgrounds for any undisclosed risks despite clean current appointments.
• Confirm asset valuations and potential impairments, particularly of fixed assets, to assess collateral quality.