Company Number: 13667386

Analysis Date: 2025-07-19 12:25 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has worsened from -£3,276 in 2022 to -£8,469 in 2023, indicating insolvency on a balance sheet basis. Substantial long-term liabilities (£626,473) exceed total assets, raising concerns about the company’s ability to meet obligations. The micro-entity status and minimal current assets (£3,938) relative to current liabilities suggest liquidity constraints.

2. Key Concerns:

• Negative Net Assets / Insolvency: Persistent and deteriorating negative equity position signals financial distress and potential inability to cover liabilities.
• High Long-Term Liabilities: Creditors due after more than one year (£626,473) are significant, exceeding total fixed assets and current assets combined, posing solvency risks.
• Low Liquidity: Current assets are minimal compared to current liabilities, suggesting tight working capital and potential cash flow difficulties.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed timely, indicating regulatory compliance and governance discipline.
• Consistent Director and Ownership: Single director and 100% shareholder is stable, simplifying decision-making and accountability.
• Operational Focus in Real Estate Management: The company operates in a potentially stable sector (real estate management and investment), which may offer asset-backed value.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment schedules, interest obligations, and creditor relationships.
• Review cash flow statements and bank balances (not provided here) to understand liquidity management and operational cash generation.
• Assess business plans or strategic reports (not included) to determine if there are turnaround strategies or capital injection plans to address negative equity.
• Confirm absence of director disqualifications or regulatory sanctions (none indicated here).
• Verify the valuation and marketability of fixed assets (£614,966) to evaluate potential asset realization under distress.