Company Number: 13543660

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets but continues to have negative net current assets, indicating liquidity pressures. The fixed assets base is stable, but high current liabilities relative to current assets create solvency concerns. However, there are no overdue filings or indications of administration or liquidation.

2. Key Concerns:

• Liquidity Deficit: Net current assets remain negative (£-17,275 in 2024), suggesting potential cash flow difficulties to meet short-term obligations.
• High Current Liabilities: Current liabilities (~£245k) are substantial relative to current assets (~£3k), pointing to reliance on longer-term funding or risk of short-term creditor pressure.
• Low Equity Base: Shareholders’ funds are minimal (£3,102), indicating low capital buffer and limited capacity to absorb losses or fund growth.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets have remained consistent at £265,902 over the last three years, implying some asset backing and potential collateral value.
• No Filing or Compliance Issues: Accounts and confirmation statement filings are up to date, demonstrating regulatory compliance and good governance practices.
• Directors’ Background: Both directors are UK nationals with relevant occupations (accountant and company director), which may support prudent financial management.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, especially the large creditor amounts falling within one year and after more than one year, to assess refinancing risk and creditor relationships.
• Review cash flow statements or management accounts (not available here) to evaluate operational cash generation and timing of liabilities.
• Understand the company’s business model and revenue streams within the real estate sector (SIC codes 68100 and 68209) to assess sustainability and profitability potential.
• Clarify if the fixed assets are income-generating properties or other assets and their market valuations to assess collateral value.
• Confirm if there are any contingent liabilities or off-balance-sheet risks not disclosed in the micro-entity accounts.