168 REAL ESTATE LIMITED

Executive Summary

168 Real Estate Limited operates as a micro-entity niche player in the UK real estate letting sector, with asset-heavy but currently leveraged financials typical of a start-up property operator. Industry headwinds such as rising interest rates and inflation present challenges, especially given its modest equity and high short-term liabilities. Its competitive position will hinge on effective management of debt and leveraging its property assets in a dynamic local market environment.

168 REAL ESTATE LIMITED - Analysis Report

Company Number: 14403135

Analysis Date: 2025-07-20 14:00 UTC

1. Industry Classification
   168 Real Estate Limited operates within the real estate sector, specifically classified under SIC code 68209 — "Other letting and operating of own or leased real estate." This sub-sector typically involves property management, leasing, and operation of real estate assets owned or leased by the company. Key characteristics include asset-heavy balance sheets, reliance on property valuations, and exposure to local real estate market cycles. Companies in this category often report significant fixed assets representing property holdings and generate revenue primarily through rental income.

2. Relative Performance
   As a micro-entity incorporated recently in October 2022, 168 Real Estate Limited’s financial footprint is modest but asset-focused. Its fixed assets stand at approximately £2.23 million, indicating ownership or long-term leasing of property assets. However, the company reports net current liabilities of about £2.18 million, resulting in minimal net assets of roughly £48,000 and shareholders’ funds at £37,452. This current liability level relative to current assets is typical for real estate firms managing short-term financing or creditor arrangements linked to property operations or acquisitions. Compared to typical industry benchmarks, established real estate operators often maintain stronger liquidity positions; however, for a micro-entity in start-up phase, this balance sheet structure aligns with early-stage property acquisition and financing models common in the sector.

3. Sector Trends Impact
   The UK real estate sector is presently influenced by several dynamics:

• Rising interest rates increasing borrowing costs, which may pressure refinancing and reduce property investment yields.
• Inflationary pressures affecting operational costs such as maintenance, insurance, and utilities.
• Post-pandemic shifts in commercial and residential property demand, with some segments seeing increased vacancies or rent adjustments.
• Regulatory changes, including environmental standards for property management, impacting operating costs and asset valuations.
  For a company like 168 Real Estate Limited, these trends imply careful management of debt structures and operational costs. As a micro-entity, its agility in adjusting leasing terms or property usage could be a competitive advantage, though exposure to financing costs is a risk.

4. Competitive Positioning
   168 Real Estate Limited is clearly a niche player within the property letting sub-sector — a micro private limited company with a sole director and shareholder controlling over 75% of the shares. Its strengths include ownership/control of fixed assets and a lean organizational structure (1 employee), which can reduce overheads. However, the relatively high current liabilities suggest dependence on short-term creditor financing, a potential vulnerability in tighter credit markets. Compared to larger firms or PLCs with diversified portfolios and stronger equity bases, this company faces limitations in scale and financial resilience. Its market positioning will depend heavily on local real estate conditions in Bristol and its ability to manage cash flows and debt obligations prudently.