Company Number: 13884237

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position but has significant long-term liabilities that exceed current assets. The micro-entity status limits the detail available, and the company is relatively new with only two full years of financial data. Although no overdue filings or regulatory issues are noted, the large creditor balances compared to current assets suggest moderate solvency and liquidity risk.

2. Key Concerns:

• High long-term liabilities (£380,000) relative to net assets (£52,992) could indicate leverage risk and potential solvency pressure if cash flows are insufficient.
• Very low current assets (£14,218) versus current liabilities (£34,401) in the latest year, though net current assets improved from prior year, suggests liquidity constraints and potential cash flow challenges.
• No employees reported, implying reliance on directors or contractors and possibly limited operational capacity which could affect business sustainability and growth potential.

3. Positive Indicators:

• Net assets increased substantially from £7,700 in 2023 to £52,992 in 2024, driven by growth in fixed assets, indicating some capital investment or asset acquisition.
• No overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance to date.
• Directors have relevant control and stable appointments since incorporation, supporting continuity in leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the £380,000 long-term liabilities to assess repayment schedules, interest costs, and covenants.
• Understand the source and valuation of fixed assets (£420,000) to confirm whether these are income-generating or developmental assets and their liquidity.
• Review cash flow statements and any intercompany or director loans not disclosed in micro-entity accounts to better evaluate liquidity and operational funding.
• Clarify business model sustainability given no reported employees and confirm revenue generation and client base given the real estate SIC codes.
• Confirm absence of contingent liabilities or off-balance sheet exposures not captured in footnotes.