Company Number: 13010881

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: MEDIUM

Justification: The company shows positive net assets and some equity growth, however the high level of long-term liabilities relative to equity and modest liquidity present some solvency and cash flow concerns typical of a micro-entity in real estate trading. No overdue filings or governance issues are evident.

2. Key Concerns:

• Long-term liabilities (£212k) significantly exceed shareholders’ funds (£24.7k), indicating high leverage and potential solvency risk if asset values decline or cash flow weakens.
• Current liabilities remain substantial relative to current assets, although net current assets are positive (£14.9k), signaling limited liquidity buffer.
• Small scale and single employee indicate limited operational capacity and possible dependence on key individuals or external financing.

3. Positive Indicators:

• Consistent growth in net assets and shareholders’ funds over recent years suggests gradual strengthening of financial position.
• No overdue statutory filings or confirmation statements, reflecting good regulatory compliance.
• The fixed asset base (£222k) is stable, indicating tangible asset holdings backing liabilities.

4. Due Diligence Notes:

• Verify nature and terms of the £212k long-term liabilities, including interest rates, covenants, and maturity profile.
• Assess cash flow generation capacity to service liabilities and fund operations, given small current asset base.
• Confirm valuation and liquidity of fixed assets (real estate holdings) to ensure realistic asset backing.
• Review director’s plans for growth, financing, and risk management given the micro-entity scale and concentration of control.