Company Number: 13156749

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative shareholders’ funds, substantial current liabilities exceeding current assets, and large long-term creditor balances relative to asset base.

2. Key Concerns:

• Solvency Risk: Negative net assets (£-20,158 as of 2024) indicate the company’s liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity Constraints: Current liabilities (£1,232,241) far exceed current assets (£17,548), resulting in a net current liability position of approximately £537,155. This points to potential cash flow difficulties in meeting short-term liabilities.
• High Leverage: The company carries sizeable creditors due after more than one year (£1,232,241), which coupled with negative equity, suggests high leverage and dependency on creditor funding.

3. Positive Indicators:

• Asset Stability: Fixed assets remain substantial and relatively stable around £1.75 million, indicating some tangible asset backing.
• Compliance: No overdue filings for accounts or confirmation statements demonstrate adherence to regulatory filing requirements, reflecting sound governance in compliance.
• Experienced Management: Directors appear stable with no indications of disqualification or adverse records, and both PSCs hold balanced control, supporting continuity in leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£1.23 million), including repayment schedules, interest terms, and covenants.
• Review cash flow statements and management accounts to assess operational cash generation and liquidity position beyond the balance sheet snapshot.
• Clarify the company’s business model and revenue streams in property management/real estate given the micro entity status but large asset base, to understand sustainability of operations and funding sources.
• Confirm any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.
• Assess directors’ plans or strategies for addressing negative equity and liquidity issues.