Company Number: 15022611

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by net liabilities of £12,565 and negative net current assets of £16,356 within its first year of operation. The liabilities exceed current assets substantially, indicating an inability to meet short-term obligations from available liquid resources.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The company’s total liabilities exceed its assets, which raises concerns about its solvency and ability to continue as a going concern.
• Limited Operating History: Incorporated in July 2023, the company has less than one full year of trading history, which limits the ability to assess operational stability and financial trends.
• Concentration of Control: Two directors each hold 25-50% ownership and voting rights, indicating concentrated control which may affect decision-making and governance transparency.

3. Positive Indicators:

• Current Filing Compliance: No overdue filings for accounts or confirmation statements, demonstrating adherence to statutory requirements and regulatory compliance to date.
• Clear Industry Focus: The company has a defined principal activity within real estate letting (SIC 68209), which provides clarity on business operations.
• Relatively Small Scale: As a small company under the “Total Exemption Full” accounting category, the reporting requirements are minimal, reducing administrative burdens.

4. Due Diligence Notes:

• Examine Sources of Current Liabilities: Investigate the nature and terms of the £17,349 current liabilities, including bank loans and other loans, to understand repayment schedules and any default risks.
• Assess Cash Flow and Revenue Generation: Request management accounts or cash flow projections to verify if the company can generate sufficient inflows to cover liabilities and improve equity position.
• Review Directors’ Backgrounds and Related Party Transactions: Confirm the experience of directors in property management and check for any transactions between the company and related parties that may affect financial health.
• Evaluate Asset Valuation: Given the low value of fixed assets (£3,791), verify whether assets are correctly valued and sufficient to support operations or secure financing.