Company Number: 12642248

Analysis Date: 2025-07-20 14:56 UTC

1. Risk Rating: MEDIUM
   The company has recently transitioned from a net liability position to a modest net asset position, indicating improvement. However, persistent negative net current assets and relatively low share capital raise concerns about liquidity and short-term solvency.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities of £47,255 significantly exceed current assets (£10,367), resulting in negative working capital (-£36,888). This suggests potential cash flow constraints to meet short-term obligations.
• Historical Solvency Issues: The company reported net liabilities for three consecutive years up to 2023, reflecting ongoing financial strain before the current positive net asset position.
• Minimal Share Capital: With only £4 share capital, the company’s equity buffer is minimal, limiting its ability to absorb losses or raise additional equity without external funding.

3. Positive Indicators:

• Improved Net Assets: The 2024 accounts show net assets of £46,488, a significant turnaround from previous years’ net liabilities, largely driven by recognition of fixed assets (£83,375).
• Timely Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance and governance practices.
• Stable Ownership and Management: Both directors and secretaries have been in place since incorporation, with no records of disqualification or compliance issues noted.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition and market value of fixed assets (£83,375) to assess their liquidity and true contribution to solvency.
• Cash Flow Dynamics: Review cash flow statements and creditor payment terms to understand how the company manages its negative working capital and meets current liabilities.
• Future Profitability and Business Model: Analyze the operational model in the real estate letting sector (SIC 68209) to evaluate sustainability and revenue generation potential, given zero employees and minimal turnover data.