2PEAS PROPERTY MANAGEMENT LTD

Executive Summary

2PEAS PROPERTY MANAGEMENT LTD demonstrates a stable asset base and improving equity, but liquidity concerns arise from a working capital deficit and significant long-term liabilities. The company’s compliance with filing requirements is a positive sign, though limited transparency due to micro-entity reporting and absence of audit warrants further investigation into debt terms and cash flow management. Overall, the risk profile is medium, balancing asset strength against liquidity and disclosure limitations.

2PEAS PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13014442

Analysis Date: 2025-07-20 12:50 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and steady equity growth, which supports solvency, but the high level of long-term creditors relative to current assets and persistent negative working capital indicate liquidity strain.

2. Key Concerns:

• Significant long-term liabilities (£329,827) compared to very low current assets (£2,854) suggest potential challenges in meeting short-term obligations or refinancing debt.
• Negative net current assets (working capital deficit of £1,295 in 2025) may impair operational cash flows, increasing risk of payment delays or liquidity crises.
• The company’s financial statements are prepared under micro-entity provisions without audit, limiting transparency and external assurance on financial health.

3. Positive Indicators:

• Net assets and shareholders’ funds have increased substantially from £16,294 in 2021 to £57,378 in 2025, indicating retained earnings or capital injections strengthening the balance sheet.
• Fixed assets remain stable at £388,500, indicating ownership of substantial long-term assets which could provide collateral or value in distress scenarios.
• The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence.

4. Due Diligence Notes:

• Clarify the nature and terms of the substantial long-term creditors to understand repayment schedules, interest obligations, and refinancing risk.
• Investigate cash flow statements and operating performance to assess whether current liabilities and working capital deficits are manageable in day-to-day operations.
• Review director’s background and governance practices given sole directorship and absence of external audit, to evaluate operational stability and oversight adequacy.