Company Number: 13049120

Analysis Date: 2025-07-29 14:16 UTC

1. Risk Rating: MEDIUM
   The company demonstrates solvency challenges with negative net current assets in the latest financial year and a significant drop in net assets from £29,843 (2022) to £2,222 (2023). While it remains active and compliant with filings, liquidity pressures and declining equity raise moderate concern.

2. Key Concerns:

• Negative Net Current Assets: The company had net current liabilities of £16,631 at 30 November 2023, indicating potential short-term liquidity issues.
• Sharp Decline in Net Assets: Shareholders’ funds fell drastically from £29,843 in 2022 to just £2,222 in 2023, suggesting financial stress or losses.
• Significant Increase in Current Liabilities: Current liabilities nearly doubled from £73,135 in 2022 to £135,613 in 2023, including a substantial rise in taxation and social security liabilities (£37,617 to £95,085), which may indicate cash flow strain or delayed payments.

3. Positive Indicators:

• Compliance: The company is active with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Ongoing Operations: The company has tangible fixed assets and stock increasing in value, indicating ongoing business activity in property development.
• Experienced Management: One current director has managerial occupation and significant control, suggesting stable leadership.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and increased liabilities, particularly the tax and social security obligations.
• Review cash flow statements (not provided) to assess the company’s ability to meet short-term obligations despite negative working capital.
• Confirm the nature and terms of hire purchase liabilities and loans, especially those falling due within one year.
• Evaluate the recoverability of debtors totaling £104,553 and any potential risks of bad debts.
• Assess the company’s profitability trends and the impact on retained earnings, as profit and loss details were not disclosed.