Company Number: 15199565

Analysis Date: 2025-07-29 21:00 UTC

1. Risk Rating: HIGH
   Justification: The company’s financial position as at 31 October 2024 shows net liabilities of £2,848 primarily due to long-term creditors exceeding total assets. The current assets are minimal at £1,578 against current liabilities of £450, indicating very limited liquidity. The company is newly incorporated (October 2023) and has no employees or significant operating history, which raises questions on operational stability.

2. Key Concerns:

• Solvency Risk: Total net assets are negative (£-2,848), driven by long-term liabilities (£582,517) exceeding fixed assets (£578,541). This suggests the company is currently insolvent on a balance sheet basis.
• Liquidity Concerns: Minimal current assets (£1,578) and near parity current liabilities (£450) offer very limited working capital to meet short-term obligations. Cash flow sufficiency is questionable.
• Operational Stability: The company has no employees and has been in operation for just over one year, with no income or trading results disclosed. The business appears to be in an early stage without demonstrated revenue or cash generation.

3. Positive Indicators:

• The company is compliant with filing requirements; accounts and confirmation statements are up to date with no overdue filings.
• Fixed assets of £578,541 suggest some tangible or investment property holdings, aligned with the company’s SIC codes in real estate activities, providing a potentially valuable asset base.
• Shareholder control is consolidated under a single individual, simplifying decision-making and governance accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the £582,517 long-term liabilities—creditors, loans, or mortgages—and assess repayment schedules and covenants.
• Clarify the valuation and liquidity of fixed assets (£578,541) to understand realizable value in distress scenarios.
• Review business plans or projections to assess how the company intends to generate operational cash flow and achieve solvency.
• Confirm related party transactions or intra-group funding, given the director and PSC overlap with similar names and addresses.
• Examine the reason for director change within three months of incorporation and any impact on governance.