Company Number: 13789072

Analysis Date: 2025-07-20 17:29 UTC

1. Risk Rating: MEDIUM
   The company shows a net negative equity position indicating solvency concerns; however, it maintains positive net current assets and is up to date with filings. This mixed picture suggests medium risk rather than high risk at this stage.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net assets are negative (£-30,472 in 2023, previously £-117,107 in 2022), reflecting accumulated losses or deficits. This raises solvency questions.
• Long-term Creditors Exceed Total Assets Less Current Liabilities: Creditors due after one year (£1,235,785 in 2023) surpass total assets less current liabilities (£1,206,214), indicating potential over-leverage and reliance on long-term debt.
• Limited Financial Disclosure: As a micro-entity, the company has minimal reporting requirements and has not filed profit and loss accounts, limiting visibility on operational performance and cash flow.

3. Positive Indicators:

• Strong Improvement in Net Current Assets: Net current assets increased significantly from £831,954 in 2022 to £1,200,476 in 2023, indicating improved short-term liquidity.
• No Overdue Filings: Accounts and confirmation statements are filed timely, showing compliance with regulatory requirements.
• Ownership and Control: Clear control by Room 7 Property Group Ltd and director James Christopher Askew suggests stable governance structure.

4. Due Diligence Notes:

• Investigate the nature, terms, and repayment schedule of long-term creditors to assess refinancing risk and debt service capacity.
• Request management accounts or cash flow forecasts to better understand operational cash generation and liquidity beyond balance sheet snapshots.
• Clarify reasons for negative equity and whether capital injections, asset disposals, or profit improvements are planned to restore net asset value.
• Confirm the absence of related-party transactions or contingent liabilities not disclosed in micro-entity accounts.