172 CCR LIMITED

Executive Summary

172 CCR Limited operates in building project development with substantial current assets and work-in-progress, evidencing operational activity. However, the company’s negative net assets and high borrowings present solvency risks that warrant further investigation. Governance transitions and liquidity metrics should be closely reviewed to confirm ongoing financial stability and management continuity.

172 CCR LIMITED - Analysis Report

Company Number: 13274551

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

1. Risk Rating: MEDIUM
   The company shows a moderately leveraged position with net liabilities at the latest year end, but maintains positive net current assets and has no overdue filings. The business appears operationally viable but exhibits signs of solvency pressure requiring monitoring.

2. Key Concerns:

• Negative net assets (£-41,666) as at 31 March 2024 indicating a shareholders’ deficit, a potential solvency concern.
• Significant loan borrowings exceeding £6.4 million current liabilities and £118k non-current, implying high financial leverage and interest burden risk.
• Fluctuating director appointments and resignations in recent periods may suggest governance instability or transition risk.

3. Positive Indicators:

• Strong net current assets of nearly £4.8 million provide a buffer to meet short-term obligations.
• Increasing stock/work-in-progress value (£11.8 million) potentially reflecting ongoing or expanding property development projects consistent with SIC code 41100.
• Timely submission of accounts and confirmation statements with no overdue filings, reflecting regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant borrowings and related repayment schedules to assess refinancing or covenant risks.
• Review the causes and context for the persistent negative net asset position and the company’s plans to restore equity.
• Clarify the reasons behind frequent director changes and verify continuity of management expertise and strategy alignment.
• Examine cash flow statements (not available here) to confirm liquidity adequacy given low cash on hand relative to liabilities.
• Assess valuation and realizability of work-in-progress stock, especially given its material size relative to liabilities.