92 CROWN STREET LIMITED

Executive Summary

92 Crown Street Limited is a recently formed property letting and trading business with significant liquidity and solvency challenges as evidenced by negative working capital and net liabilities. While the company benefits from asset backing and a stable ownership structure, high secured debt and lack of earnings visibility raise concerns about operational sustainability. Further due diligence on financing terms and business viability is recommended.

92 CROWN STREET LIMITED - Analysis Report

Company Number: SC745803

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns, with net current liabilities of £179,917 and overall net liabilities of £800. The business is newly incorporated and has a concentrated ownership/control structure, increasing risk exposure.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£188,975) far exceed current assets (£9,058), indicating potential short-term liquidity issues.
• Net Liabilities Position: Total liabilities exceed total assets by £800, signaling that the company is technically insolvent at the balance sheet date.
• High Secured Debt: Bank loans totaling £160,940 are secured against company assets, including a property, which may restrict operational flexibility and indicate reliance on debt financing.

3. Positive Indicators:

• Ownership and Control Stability: One director and 100% shareholder, Mr. Syed Farooq Ahmed, has clear control which can enable decisive management and strategic direction.
• Asset Backing: The company owns tangible fixed assets (property) valued at £307,869, providing some collateral base to support liabilities.
• Up-to-date Filings: No overdue accounts or confirmation statements, suggesting compliance with filing requirements and governance basics.

4. Due Diligence Notes:

• Review the terms and covenants of the secured bank loans and their impact on cash flows and refinancing risk.
• Assess the income generation and operational model, as no profit and loss information was provided and the company currently has no employees.
• Investigate the director’s plans for addressing the negative working capital and net liabilities, including any capital injection or asset sales.
• Confirm the valuation and marketability of the property asset recorded to ensure it fairly represents recoverable value.
• Evaluate related party transactions or contingent liabilities that may not be apparent from the accounts.