Company Number: 12412505

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets indicating ongoing liquidity issues and an inability to cover short-term liabilities from current assets. Despite small positive net assets driven by fixed assets, the working capital position suggests significant solvency risk. The minimal share capital and reliance on a single director also increase operational risk.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of approximately £86k to £88k over consecutive years indicate the company struggles to meet short-term obligations with available liquid assets.
• Limited Operational Scale: Micro-entity status with only one employee and very low share capital (£1) limits financial flexibility and market presence.
• Single Director Control: Full ownership and control concentrated in one individual may present governance and continuity risks, especially as the director resides outside the UK (UAE), potentially complicating oversight.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain steady at around £95k, suggesting some tangible asset backing for the business.
• Current Compliance: No overdue filings or confirmation statement issues, indicating adherence to regulatory requirements.
• Consistent Reporting: The company has filed accounts consecutively since incorporation with no signs of suspension or liquidation.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to assess their realizable value in financial distress scenarios.
• Review cash flow statements or bank statements (if available) to confirm operational cash generation or dependence on external funding.
• Confirm the director’s capacity to manage and support the company given the residency outside the UK.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the micro-entity accounts.
• Understand the business model under SIC 68209 (real estate letting) to evaluate market conditions and revenue sustainability.