Company Number: 13869393

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current liabilities over the last three years, indicating insolvency risk. Current liabilities vastly exceed current assets, suggesting liquidity constraints.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are negative (£-14,193 in 2024), indicating liabilities exceed assets and potential insolvency.
• Poor Liquidity Position: Current liabilities (£204,463) far outweigh current assets (£2,782), resulting in significant negative working capital (net current assets of £-134,680). This raises concerns about the company’s ability to meet short-term obligations.
• Reliance on Long-term Creditors: The company has substantial long-term creditors (£204,463), which may affect financial flexibility and operational stability if these obligations are not managed effectively.

3. Positive Indicators:

• Stable Fixed Assets: The company’s fixed assets remain constant at £325,850 over three years, suggesting some asset base that could potentially support operations or be leveraged.
• Compliance with Filings: No overdue accounts or confirmation statements were noted, indicating regulatory compliance and good governance in filing requirements.
• Small and Micro Entity Status: The company benefits from simplified reporting and audit exemptions, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors and their impact on solvency and operations.
• Assess cash flow forecasts to understand how the company plans to address negative working capital and meet immediate liabilities.
• Review the company’s business model and revenue streams in the real estate letting sector to evaluate sustainability given current financial strains.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not reflected in the accounts.
• Consider director backgrounds and related party transactions given director Mr. Zack Edward George’s significant control.