Company Number: 13532005

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: HIGH
   The company’s most recent financials indicate a deteriorating financial position with net liabilities (negative net assets) and persistent losses. The net assets declined from £21,358 (2023) to a negative £6,495 (2024), signaling solvency concerns. Negative net current assets and the presence of long-term creditors exacerbate liquidity risk.

2. Key Concerns:

• Solvency and Negative Equity: The company reported negative shareholders’ funds (£-6,495) in 2024, down from positive £21,458 in 2023, indicating erosion of capital and possible insolvency risk.
• Liquidity Strain: Current liabilities (£50,844) exceed current assets (£40,289), producing negative net current assets (£-10,555) as of 2024, suggesting difficulty in meeting short-term obligations.
• Long-Term Debt Exposure: Creditors due after one year stand at £10,732 in 2024, down from £75,000 in 2023, but still significant relative to the company’s total assets, indicating reliance on creditor financing and potential refinancing risk.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active, up to date with accounts and confirmation statements, with no overdue filings, reducing regulatory compliance risk.
• Experienced Directors: Both directors have professional backgrounds (accountant and IT consultant) and are resident in the UK, with no disqualifications noted, supporting competent governance.
• Some Asset Base: Tangible fixed assets increased notably to £14,792 in 2024 from £751 in 2023, representing some investment in physical or leased property assets.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (noted at £10,732) and any associated covenants or refinancing risks.
• Review recent operational cash flows and turnover figures (not disclosed) to assess ongoing business viability and revenue trends.
• Assess the reasons behind the sharp decline in cash (£35,289 from £75,000) and increase in current liabilities, including possible supplier credit issues or operational cash burn.
• Confirm any off-balance sheet liabilities or contingent liabilities not reflected in the abridged accounts.
• Explore the company’s business model and market conditions given its SIC codes involve real estate investment and letting, sectors potentially sensitive to economic cycles.