ADBEX PROPERTIES LIMITED

Executive Summary

ADBEX PROPERTIES LIMITED shows significant solvency and liquidity risks, driven by recurring negative working capital and minimal net equity. While regulatory compliance and asset stability are positives, the company’s financial structure suggests potential difficulty in meeting obligations without intervention. Further due diligence on creditor arrangements and operational cash flows is essential to assess viability.

ADBEX PROPERTIES LIMITED - Analysis Report

Company Number: 14120765

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to persistent negative working capital and minimal net asset value. The high level of long-term liabilities compared to assets suggests potential difficulty in meeting obligations.

2. Key Concerns:

   • Negative Net Current Assets: The company consistently reports net current liabilities around £79,000, indicating liquidity issues and potential cash flow constraints.
   • Low Net Assets/Shareholders’ Funds: Despite a slight improvement in the latest year, net assets remain marginal (£1,079), reflecting weak equity backing and potential insolvency risk.
   • Significant Long-Term Creditors: Creditors falling due after more than one year total approximately £178,000, exceeding fixed assets, which may imply over-leverage or reliance on debt financing without sufficient asset cover.

3. Positive Indicators:

   • Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
   • Stable Fixed Asset Base: Fixed assets remain constant at £258,600, suggesting some underlying asset value to support operations.
   • Experienced Management: Directors and persons with significant control have been in place since incorporation with no negative records, implying stable leadership.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term creditors, including repayment schedules and covenants.
   • Review cash flow statements and bank facilities to assess liquidity management and ability to meet short-term obligations.
   • Obtain information on business operations and revenue streams to evaluate sustainability and plans to improve financial position.
   • Confirm no contingent liabilities or off-balance-sheet exposures that could exacerbate financial risk.
   • Clarify the reason for persistent working capital deficits and whether there is shareholder support or plans for capital injection.