Company Number: 13230042

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: HIGH
   The company’s financial position shows net liabilities and persistent negative working capital, indicating potential solvency and liquidity concerns despite its small size and micro-entity reporting status.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £1,037 at 28 February 2024, down from positive net assets of £100 previously, suggesting erosion of equity.
• Significant Current Liabilities: Current liabilities of £78,045 vastly exceed current assets of £100, resulting in a large negative net current asset position (~-£68,353), raising liquidity risk.
• Long-Term Creditors: The company carries creditors falling due after more than one year of £78,045, implying dependency on external financing and potential refinancing risk.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets remain constant at £145,361 over multiple years, indicating the company has tangible long-term assets likely related to its real estate letting activities.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good governance and regulatory compliance.
• Consistent Management and Control: The same two directors, who also hold significant control, have been in place since incorporation, providing stability in leadership.

4. Due Diligence Notes:

• Review detailed notes (not provided) regarding the nature and terms of the £78,045 creditors, especially the long-term liabilities, to assess repayment obligations and refinancing risks.
• Investigate cash flow statements or management accounts (not available here) to understand operational cash generation and how the company services its liabilities.
• Assess the valuation and liquidity of fixed assets to determine if they can be leveraged or sold if required for meeting obligations.
• Confirm whether there are any contingent liabilities or related party transactions that could further impact financial stability.
• Given the micro-entity reporting, consider requesting more detailed financial information to evaluate operational performance and sustainability.