Company Number: 14226366

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

1. Risk Rating: HIGH
   The company shows significant solvency risks given that net assets have turned negative (£-2,851) at the latest year-end despite having positive total assets less current liabilities. This is due to long-term creditors exceeding total assets after current liabilities, indicating potential over-leverage and inability to cover all obligations.

2. Key Concerns:

• Negative net assets and shareholders' funds indicate the company’s liabilities exceed its assets, a critical financial red flag for solvency.
• Large creditors due after more than one year (£114,115) relative to fixed assets (£156,070) and very low current assets suggest liquidity constraints and dependence on long-term financing.
• No employees and minimal current assets (£1,758) imply limited operational activity or revenue generation, raising sustainability concerns for ongoing operations.

3. Positive Indicators:

• The company is current with statutory filings and accounts, showing compliance with Companies House requirements.
• Fixed assets have increased significantly in the latest period, potentially indicating recent investment or acquisition of property relevant to its real estate letting operations.
• Being a micro-entity reduces complexity and regulatory burden, which might be suitable for a startup phase.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£114,115) to assess repayment obligations, interest costs, and potential covenants.
• Review cash flow statements or management accounts to understand operational cash generation and timing of liabilities.
• Clarify the company’s business plan and revenue model given zero employees and minimal current assets, to assess viability and growth prospects.
• Confirm if the fixed assets are owned or leased and verify valuation methods to ensure asset figures are not overstated.