Company Number: 13910747

Analysis Date: 2025-07-20 16:58 UTC

1. Risk Rating: HIGH

Justification: The latest financials show net liabilities, indicating the company’s total liabilities exceed its assets. Although it is a micro-entity with limited disclosure, the negative equity position and minimal net current assets suggest solvency challenges. The company is recently incorporated (2022) and has limited operational history, increasing uncertainty around sustainability. No audit has been performed, which limits financial assurance.

2. Key Concerns:

• Negative net assets of £10,524 as at 31 December 2024, reflecting a net liability position and potential solvency risk.
• Very low net current assets (£72,076) relative to current liabilities (£2.5 million), raising liquidity concerns despite a positive working capital.
• Lack of an audit and minimal financial disclosures under micro-entity reporting reduce transparency and limit assessment of operational stability.

3. Positive Indicators:

• Timely filing of both accounts and confirmation statements, indicating regulatory compliance so far.
• The company is active with no overdue filings or liquidation proceedings.
• Current directors and persons with significant control appear stable and involved, with clear ownership and governance control.

4. Due Diligence Notes:

• Obtain fuller financial details beyond micro-entity filings, including profit & loss information and cash flow statements if available.
• Investigate the nature and terms of the significant current liabilities (£2.5 million) and long-term creditors (£79,600) to assess repayment risks.
• Review directors’ plans or funding arrangements to address negative net assets and support ongoing operations.
• Confirm the company’s business model viability given it operates in property development and trading, which can be capital intensive and cyclical.