Company Number: 14225142

Analysis Date: 2025-07-20 12:21 UTC

1. Risk Rating: HIGH

Justification: RENISHA LTD shows a highly leveraged balance sheet with fixed assets financed by long-term creditors totaling £550,000, leaving net assets and shareholders’ funds at a minimal £412. Current assets are negligible (£1,259) relative to current liabilities (£847), indicating extremely tight liquidity. The company has no employees and limited operational data, increasing operational risk.

2. Key Concerns:

• Solvency Risk: The company’s fixed assets are almost entirely debt-financed with long-term creditors equaling the fixed asset value, resulting in negligible equity. This suggests high solvency risk if asset values decline or creditors demand repayment.
• Liquidity Constraints: Minimal current assets and barely positive net current assets (£412) imply limited cash or working capital to meet short-term obligations, which could cause cash flow difficulties.
• Operational Viability: With zero employees and no turnover data disclosed, it is unclear how the business generates revenue or sustains operations, raising questions on ongoing viability.

3. Positive Indicators:

• Compliance: The company is active and up to date with its statutory filings including accounts and confirmation statements, showing no current regulatory compliance issues.
• Accounting Presentation: Accounts are prepared under micro-entity provisions and signed by the director, providing transparency on financial position.
• Industry Focus: Engaged in real estate management and trading (SIC codes 68100, 68209, 68320), which can be asset-rich and potentially stable sectors if properly managed.

4. Due Diligence Notes:

• Verify nature and terms of the £550,000 long-term creditors: Are these loans, mortgages, or other liabilities? Confirm repayment schedules, interest rates, and covenants.
• Investigate revenue streams and business operations given zero employees and absence of turnover data: How is the company generating income and managing properties?
• Assess asset valuation: Confirm that fixed assets (likely real estate) are valued appropriately and are marketable to cover outstanding debt.
• Review director background and related party transactions to identify any governance or related risk concerns.
• Obtain any interim management accounts or cash flow forecasts to assess liquidity beyond the annual snapshot.