Company Number: 14371538

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency concerns with net liabilities reported on the balance sheet. Negative net current assets and total net liabilities indicate an inability to meet short-term and long-term obligations without external support.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£106,078) far exceed current assets (£13,386), reflecting a working capital deficit of approximately £92,692 as of 2024. This suggests liquidity stress and potential cash flow difficulties.
• Negative Net Assets: The company has total net liabilities of £11,322, indicating that total liabilities exceed total assets, undermining solvency and financial resilience.
• Single Director and Control: Mr. Mark Alan Wells owns 75-100% of shares, holds full voting rights, and is the sole director, which concentrates control and may raise governance and operational risk concerns, especially given his unrelated occupation (window fitter).

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are filed on time with no overdue returns, indicating good regulatory compliance and governance discipline in reporting.
• Consistent Asset Base: Fixed assets have remained stable at £81,370 over the last two years, suggesting some tangible asset backing.
• Micro Entity Status: Small scale operations with limited obligations and simplified reporting requirements reduce some complexity and compliance burden.

4. Due Diligence Notes:

• Investigate the nature of current liabilities (£106k+) and repayment terms to assess immediate solvency risks. Determine whether liabilities are trade creditors, loans, or other obligations.
• Review cash flow statements or bank records (not provided) to understand liquidity position and ability to service short-term debts.
• Assess business model sustainability given the single director’s background and the company’s activity in residents property management (SIC 98000) with minimal staff (1 employee).
• Confirm whether there are any off-balance sheet liabilities or contingent liabilities not disclosed in the micro-entity accounts.
• Examine related party transactions or intercompany loans that may impact financial stability.
• Evaluate whether the company has plans or access to additional funding to remedy negative net asset position.