Company Number: 13989733

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   The company shows persistent net current liabilities and negative net assets over the last two reported financial years. This indicates an inability to cover short-term obligations with current assets, signaling elevated solvency and liquidity risk.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £1,706 at 31 March 2024 and £854 at 31 March 2023, reflecting a worsening short-term liquidity position.
• Negative Shareholders’ Funds: Shareholders’ funds are negative (£1,706 as of 2024), indicating accumulated losses or capital deficiency, which undermines financial stability.
• Limited Financial Information and Micro-Entity Reporting: As a micro-entity, the company files minimal financial disclosures without a profit and loss account, restricting visibility into operational performance and cash flow dynamics.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is current with its accounts and confirmation statement filings, demonstrating regulatory compliance.
• Single Director with Full Control: The sole director and 100% shareholder, Mr. Roscoe Sun, may enable agile decision-making and clear accountability.
• Stable Current Asset Figure: Current assets remain stable at approximately £220,000, suggesting some asset base is maintained.

4. Due Diligence Notes:

• Operational Performance and Cash Flow: Investigate profit and loss details and cash flow statements, which are not publicly filed, to assess operational viability.
• Nature of Current Liabilities: Clarify the composition and maturity of current liabilities to understand urgency and possible refinancing risks.
• Capital Injection Plans: Determine whether the sole shareholder plans further capital injections to address negative equity and liquidity shortfalls.
• Business Model and Revenue Streams: Assess the sustainability of the real estate agency operations given the small scale and financial position.
• Director Background and Governance: Verify the director’s business track record and governance practices, given sole control and responsibility.