Company Number: 12569572

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: MEDIUM
   The company shows persistent negative or very low net assets and relies heavily on long-term creditors. While it is not currently in liquidation or administration and filings are up to date, the minimal equity base (£2,784 at latest year-end) and recurring losses indicate moderate solvency risk.

2. Key Concerns:

• Solvency Position: Net assets remain very low and only marginally positive after several years of operation. In 2021 and 2020 net assets were negative, indicating past financial distress.
• High Long-Term Liabilities: Creditors due after more than one year exceed £313,000, which dwarfs the equity base and current assets, suggesting significant leverage and dependency on external financing.
• Operating Loss in Latest Year: The latest reported financial year ended with a loss of £1,609 and declining net assets from £4,393 to £2,784, pointing to operational challenges or insufficient income to cover expenses.

3. Positive Indicators:

• Filing Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Stable Fixed Assets: Fixed assets remain steady at approximately £296,000, implying a stable asset base likely related to their real estate letting activity.
• No Employees: The company operates without employees, which may contain operating costs and reduce cash burn.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, including repayment schedules, interest rates, and covenants.
• Review cash flow statements and bank statements (not provided) to assess liquidity and ability to meet short-term obligations.
• Clarify the source of ongoing funding and whether the directors or related parties provide financial support.
• Understand the business model and revenue streams in more detail, including rent roll and occupancy rates, to evaluate operational sustainability.
• Confirm the absence of any director disqualifications or regulatory issues beyond what is disclosed.