Company Number: 13477777

Analysis Date: 2025-07-29 16:52 UTC

1. Risk Rating: HIGH

Justification: The company’s balance sheet reveals a significant net liability position, with current liabilities vastly exceeding current assets, indicating serious solvency concerns. The persistent and substantial negative net assets over multiple years suggest the company is unable to meet its short-term obligations from existing liquid resources.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of approximately £91,000 for the last two years, reflecting a negative equity position and potential insolvency risk.
• Liquidity Mismatch: Current liabilities (~£92,800) far exceed current assets (~£1,700), implying poor working capital and potential cash flow difficulties.
• No Employees and Micro Entity Status: The absence of employees and the micro-entity filing category may indicate limited operational activity or scale, raising questions about business sustainability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Sole Director and Shareholder Control: The company is controlled by a single individual who is also the director, potentially allowing for swift decision-making.
• Business Activity: The SIC code (68209) indicates involvement in real estate letting/operating, which can be a stable income source if the assets are productive.

4. Due Diligence Notes:

• Verify the nature and maturity profile of the company’s liabilities to understand the immediate solvency pressures.
• Investigate whether the company holds or manages any real estate assets off-balance sheet or through other entities, given the negative net assets present.
• Clarify the company’s operational model and revenue streams, especially since no employees are reported and current assets are very low.
• Review any contingent liabilities or related party transactions that may not be evident in the micro-entity accounts.
• Assess the director’s plans or strategies to address the negative equity and liquidity position.