Company Number: 14253339

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to negative net assets and substantial liabilities exceeding its current assets by a large margin.

2. Key Concerns:

• Negative Net Assets: The company’s net assets stand at -£12,834 as of 31 July 2024, indicating that liabilities outweigh assets and shareholder equity is negative.
• High Creditors Balance: There is a material creditor amount of £283,209 due after one year, which is a considerable obligation relative to the company’s asset base.
• Minimal Current Assets and Cash: Current assets are only £375, which is negligible relative to liabilities, indicating possible liquidity issues to meet short-term obligations.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting compliance with statutory requirements.
• Stable Ownership and Management: Directors and Persons of Significant Control have been consistent since incorporation, providing continuity.
• Fixed Asset Base: The company holds fixed assets valued at £270,000, presumably real estate aligned with its core business of letting residential properties.

4. Due Diligence Notes:

• Investigate the nature and terms of the £283,209 creditor balance, including repayment schedules and interest obligations.
• Clarify the valuation basis and liquidity of the £270,000 fixed assets, and whether these can be leveraged or sold if needed.
• Assess cash flow forecasts and plans for addressing negative equity to determine operational sustainability.
• Review directors’ commentary or strategic plans addressing current financial position and future business development.
• Confirm that the company’s property lettings generate sufficient rental income and evaluate tenant stability and occupancy rates.