Company Number: 13886079

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities increasing to £2,880 and negative net current assets of approximately £40,889 as of the latest financial year ending February 2025. The presence of substantial long-term creditors (£94,488) and continued negative shareholder funds highlight a distressed financial position.

2. Key Concerns:

• Solvency Issues: The company’s net liabilities position and persistent negative equity indicate an inability to cover its obligations with existing assets.
• Liquidity Strain: Negative net current assets worsened substantially from previous years, signaling potential cash flow difficulties to meet short-term liabilities.
• Increasing Long-term Debt: The recognition of £94,488 in creditors due after more than one year, absent in prior years, raises questions about increased leverage and financial sustainability.

3. Positive Indicators:

• Active Status with Filings Up to Date: The company is currently active and has no overdue filings, showing regulatory compliance and administrative diligence.
• Ownership Stability: The two directors are also significant shareholders, potentially aligning management and ownership interests.
• Micro Entity Reporting: The company qualifies as a micro entity, reducing reporting complexity and cost, which may be beneficial for operational focus at this stage.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditor liability of £94,488 to understand repayment obligations and financing structure.
• Review cash flow statements and any available management accounts to assess operational cash generation and short-term liquidity management.
• Examine underlying business model viability, including property asset quality and rental income streams given the real estate SIC codes, to evaluate prospects for financial recovery.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the micro-entity accounts.
• Assess director backgrounds and related party transactions for potential conflicts or risks.