Company Number: 13002797

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: MEDIUM
   The company exhibits a moderate solvency position with positive net assets and shareholders’ funds that have steadily increased over recent years. However, the very high level of long-term liabilities relative to assets and current liabilities close to current assets suggest caution regarding liquidity and debt servicing capacity.

2. Key Concerns:

• High Leverage: The company’s creditors falling due after more than one year stand at over £613k against total assets of approximately £674k, indicating significant long-term debt which may strain cash flows.
• Tight Working Capital: Net current assets are positive but relatively small (£15k in 2024), which could create liquidity challenges if short-term obligations arise unexpectedly.
• No Employees and Minimal Share Capital: Operating with zero employees and nominal share capital (£2) could point to limited operational capacity or reliance on external management, which may raise concerns about sustainability or governance robustness.

3. Positive Indicators:

• Increasing Net Assets: Shareholders’ funds have grown steadily from £20.7k in 2020 to £60.4k in 2024, reflecting some retained earnings or capital injection.
• Timely Filing and Compliance: The company is current with accounts and confirmation statement filings, indicating good regulatory compliance.
• Stable Fixed Assets: The fixed assets base remains substantial (~£659k), consistent with the property letting nature of the business, supporting operational continuity.

4. Due Diligence Notes:

• Review the nature and terms of the long-term liabilities to assess refinancing risk and covenant compliance.
• Investigate cash flow statements to confirm the company’s ability to service debt and manage working capital efficiently.
• Clarify the operational model given zero employees and minimal share capital, including any reliance on related parties or management agreements.
• Confirm the identity and role of the significant control entity (West Strand Properties 2 Ltd) and any intercompany relationships or guarantees.
• Assess property valuations and any contingent liabilities or risks associated with the real estate portfolio.