Company Number: 13124825

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: HIGH
   The company shows consistent negative net assets and negative shareholders' funds across four years, indicating solvency issues. Current liabilities exceed current assets, pointing to liquidity concerns. The total long-term liabilities surpass total assets, suggesting financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported a net liability position (circa -£11,600) consistently from incorporation through the latest accounts, signaling erosion of capital and potential insolvency risk.
• Negative Net Current Assets: Current liabilities are slightly higher than current assets (net current liabilities of approx. -£3,638), which may impair the company’s ability to meet short-term obligations.
• High Long-Term Creditors Relative to Fixed Assets: Creditors falling due after more than one year (approx. £205,645) exceed fixed assets (£197,682), indicating reliance on external financing and possible over-leverage.

3. Positive Indicators:

• Regular Filing Compliance: The company’s accounts and confirmation statements are up to date and not overdue, reflecting adherence to regulatory requirements.
• Stable Fixed Asset Base: The fixed assets have remained stable over the years at £197,682, suggesting consistent investment or ownership of tangible assets.
• Experienced Directors: The directors have maintained their appointments since incorporation without reported disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate Nature and Terms of Long-Term Creditors: Understand the structure, covenants, and repayment schedule of the creditors exceeding fixed assets to assess refinancing or default risks.
• Review Cash Flow Statements and Profit & Loss Accounts: These were not provided but are critical to evaluate operational cash flows and ongoing viability.
• Examine Business Model and Revenue Streams: Given the SIC codes (real estate management and trading), assess market conditions, revenue diversification, and sustainability.
• Assess Directors’ Plans for Addressing Negative Equity: Clarify if there are capital injections, restructuring, or asset disposals planned to improve financial health.
• Confirm No Off-Balance Sheet Liabilities: The footnotes state “No” off-balance sheet disclosures, but external obligations or guarantees should be verified.