Company Number: 12992561

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest but positive net assets and current assets exceeding current liabilities, indicating basic solvency. However, the presence of creditors due after more than one year and relatively low absolute asset values for a company incorporated in 2020 suggests some caution is warranted. The absence of employees and limited financial scale limit operational complexity but may also imply reliance on external parties or minimal trading.

2. Key Concerns:

• Long-term Creditors: The company carries £16,278 in liabilities due after more than one year, which is significant relative to net assets (£6,849). This could pressure future liquidity or require refinancing.
• Limited Financial Scale: As a micro-entity with low turnover (implied by account category) and modest net assets, the company’s capacity to absorb adverse financial shocks may be limited.
• Concentration of Control: Two individuals hold large overlapping control stakes (75-100% and 50-75%), which may raise governance and decision-making risk, particularly given the small size and lack of independent oversight.

3. Positive Indicators:

• Positive Working Capital: The company’s current assets (£24,539) exceed current liabilities (£16,278 plus £1,412 accruals), indicating short-term obligations are covered.
• Up-to-date Filings: The company has filed accounts and confirmation statements on time with no overdue filings, suggesting regulatory compliance and governance discipline.
• Consistent Growth in Net Assets: Net assets have increased from £1 in 2020 to £6,849 in 2024, indicating some accumulation of value over time despite the small scale.

4. Due Diligence Notes:

• Examine the nature and terms of long-term creditors: Understand the composition, interest rates, maturity dates, and covenants attached to the £16,278 long-term liabilities.
• Review business model and revenue generation: Given the absence of employees and micro-entity status, determine how the company generates income and sustains operations in real estate management and investment.
• Assess director and shareholder relationships: Investigate governance practices given the high concentration of control and potential related-party transactions.
• Check for off-balance-sheet liabilities or commitments: Although none are disclosed, confirm no significant contingent liabilities exist that could impair liquidity.