Company Number: 13888963

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   Springfinch Ltd exhibits a concerning financial position with persistent net liabilities and negative shareholders' funds. The company’s current liabilities significantly exceed its current assets, indicating considerable short-term liquidity risk. The absence of employees and minimal current assets raise doubts about operational sustainability.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are negative (£-10,460), showing the company’s liabilities exceed its assets, which signals potential solvency issues.
• Severe Working Capital Deficit: Net current liabilities stand at approximately £128k, indicating the company may struggle to meet short-term obligations without additional financing.
• Lack of Operational Activity: No employees reported and negligible current assets (£6,022) suggest limited ongoing business operations or revenue generation to support obligations.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, demonstrating compliance with statutory requirements and good governance practices in this regard.
• Stable Fixed Asset Base: Fixed assets remain stable around £400k, which may represent real estate holdings consistent with the company’s SIC codes in real estate management and trading.
• Clear Ownership and Control: A single corporate entity (Rosetanager Ltd) holds full control, which may simplify decision-making and potential recapitalization efforts.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets (£401k) to confirm realizable value and potential to cover liabilities.
• Review financing arrangements related to the significant long-term creditors (£283k) to understand repayment terms and risk of default.
• Assess business model viability given zero reported employees and minimal current assets, including revenue streams and future trading prospects.
• Confirm the reason for persistent negative net assets since incorporation and any plans by shareholders to address the deficit.
• Validate absence of audit due to micro-entity status and consider obtaining more detailed financial information if available.