Company Number: 14036994

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-6,485 as of 30 April 2024) and significant long-term liabilities exceeding total assets, indicating solvency concerns. Negative shareholders' funds and increasing creditor amounts suggest financial stress.

2. Key Concerns:

• Solvency Risk: The company has total liabilities after one year (£134,172) exceeding total assets less current liabilities (£127,687), leading to negative net assets—an indicator of potential insolvency.
• Liquidity Concerns: Despite positive net current assets reported (£61,794), current liabilities and creditors are substantial and have increased year over year, which could pressure short-term liquidity if cash inflows are not timely.
• Operational Stability: The company has no employees, which may imply reliance on a sole director or contractor arrangements; coupled with minimal current assets (£5,689), operational capacity and sustainability are uncertain.

3. Positive Indicators:

• The company is current with all statutory filings, including accounts and confirmation statements, demonstrating regulatory compliance and no overdue filings.
• Fixed assets have increased significantly from £87,550 to £189,481 in the last financial year, suggesting investment in tangible assets, possibly real estate, which aligns with its SIC classification (buying and selling own real estate).
• The director and sole significant controller have been in position since incorporation, providing leadership continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term liabilities (£134,172) to assess repayment schedules and creditor covenants.
• Clarify the valuation and liquidity of fixed assets to understand whether they can be easily realized if needed.
• Review cash flow statements and management accounts for the current period to evaluate ongoing liquidity and operational cash generation.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.
• Assess the business model's sustainability given the absence of employees and limited current assets.