Company Number: 15162747

Analysis Date: 2025-07-20 18:48 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with limited financial history. While it reports positive net assets, the significant bank loan secured by fixed charge and current net liabilities highlight some solvency and liquidity concerns typical for a start-up in real estate. The absence of employees and limited current assets suggest operational scale is minimal so far.

2. Key Concerns:

• High Leverage: The company holds a bank loan of £74,121 secured against its property, which is a material liability relative to total assets of £98,341. This leverage could strain cash flows if rental income or property value underperforms.
• Negative Net Current Assets: Current liabilities of £7,600 exceed current assets of £1,461, resulting in working capital deficit of £6,139. This could indicate cash flow pressure to meet short-term obligations.
• Lack of Operational Data: No employees and no detailed profit and loss information limits insight into revenue generation, operating costs, or profitability, making sustainability uncertain.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liabilities, the company has net assets of £17,421, indicating some equity buffer.
• Compliance and Timely Filing: The company has filed accounts and confirmation statements on time with no overdue filings, which suggests sound governance and regulatory compliance.
• Experienced Director: One director is an accountant, which may benefit financial oversight and reporting accuracy.

4. Due Diligence Notes:

• Review underlying terms and conditions of the £74,121 bank loan, including repayment schedule and covenant requirements.
• Obtain detailed profit and loss data or cash flow statements to assess revenue streams, expense structure, and liquidity position.
• Clarify the nature and valuation of fixed assets, especially the property securing the loan, to confirm collateral adequacy.
• Investigate business plan and pipeline for real estate transactions or lettings to understand operational viability and growth prospects.
• Confirm no director disqualifications or legal proceedings that might impair governance.