3-EIGHT PROPERTY SOLUTIONS LTD

Executive Summary

3-EIGHT PROPERTY SOLUTIONS LTD shows significant financial distress characterized by persistent negative net assets, negative working capital, and minimal cash reserves. The company’s solvency and liquidity position pose substantial risks, although it remains compliant with filing obligations and has stable management. Further investigation into debt structure and business viability is essential before considering investment.

3-EIGHT PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 12501577

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent and increasing net liabilities, negative net current assets, very low cash balances, and reliance on director loans, indicating significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities worsened from £17,755 in 2023 to £19,120 in 2024, showing accumulated losses that erode the equity base and raise solvency doubts.
• Poor Liquidity Position: Cash on hand is negligible (£95 in 2024), while current liabilities exceed £13,000, mainly loans from directors, suggesting limited ability to meet short-term obligations without further financing.
• Dependence on Director Loans and External Debt: Over £12,600 of current liabilities are director loans, and there are bank loans of £5,835 due beyond one year, indicating reliance on related-party financing and external debt which may not be sustainable.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, showing regulatory compliance.
• Stable Management: The current director has been in place since incorporation, and there are no reported disqualifications or governance issues.
• Small Scale Operation: The company employs 1 person on average, which may limit overheads and financial exposure.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and bank loans, including repayment schedules and security arrangements.
• Review recent trading performance, cash flow forecasts, and plans for addressing accumulated losses and negative equity.
• Confirm whether the company has any secured assets or contingent liabilities not disclosed in the accounts.
• Assess the business model sustainability given the continuous losses and negative working capital position.
• Clarify the role and level of involvement of the former significant controller (Miss Monica Marcella Newell) who resigned in 2021 but was a PSC.