Company Number: 13070745

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: MEDIUM
   While RED IX LIMITED holds significant investment property assets, the company consistently reports substantial net current liabilities exceeding £300,000 and negative working capital, which indicates potential liquidity stress. However, the net asset position remains positive and growing, supported by stable investment property valuations, mitigating immediate solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: The company shows substantial negative working capital (£-328,690 in 2024), which may indicate challenges meeting short-term obligations without refinancing or asset liquidation.
• Concentration in Investment Property: Fixed assets are almost entirely investment property valued at £435,515 with no apparent diversification, exposing the company to real estate market fluctuations.
• No Employees and Minimal Share Capital: The absence of employees and minimal share capital (£4) could suggest limited operational capacity and reliance on directors for management, potentially raising governance and operational sustainability questions.

3. Positive Indicators:

• Stable Investment Property Valuation: The investment property value remained stable at £435,515 between 2023 and 2024, indicating asset value preservation.
• Positive Net Assets and Growing Equity: Net assets increased from £79,779 in 2023 to £97,500 in 2024, reflecting retained earnings growth and a strengthening equity base.
• Compliance with Filing Requirements: The company has up-to-date filings with no overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance practices.

4. Due Diligence Notes:

• Examine Cash Flow and Debt Repayment Plans: Investigate how the company manages its liquidity gap given negative net current assets and whether short-term liabilities are sustainable.
• Review Investment Property Valuations and Market Exposure: Confirm valuation methodology and assess market risks or potential impairments related to the property portfolio.
• Assess Directors’ Capacity and Governance: Understand the operational model given no employees and minimal share capital, including director involvement and any third-party management arrangements.