Company Number: 13629194

Analysis Date: 2025-07-29 19:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as reflected in its negative net current assets and a substantial reduction in net assets over the last financial year. The ongoing erosion of equity and working capital deficits indicate potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£267,123) exceed its current assets (£129,893) by £137,230 as of 30 September 2023, highlighting cash flow and liquidity pressures.
• Diminishing Net Assets: Net assets have reduced drastically from £181,402 in 2022 to £36,596 in 2023, suggesting operational or financial distress.
• Significant Provisions: Provisions for liabilities of £40,774 decrease the net assets further and may indicate contingent liabilities or potential future costs not yet crystallised.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active with no overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Experienced Control: Majority ownership by Mr. Valentin Velescu, who is also a director, could provide stable decision-making and control.
• Industry Focus: Engaged in development of building projects (SIC 41100), a sector with potential for long-term value creation if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the causes behind the sharp decline in net assets and increasing current liabilities—whether due to operational losses, increased borrowing, or other factors.
• Review the nature and expected timing of the provisions for liabilities to assess contingent risks.
• Examine cash flow statements and debtor collections process to evaluate liquidity management and the risk of bad debts.
• Assess whether the fixed asset base is impairing and if depreciation charges are appropriate, given the decrease in net book value.
• Confirm if there are any director-related transactions or loans that may impact financial stability.
• Consider the impact of the company’s unaudited abridged accounts on the reliability of financial information.