AJTA PROPERTIES LIMITED

Executive Summary

Ajta Properties Limited shows concerning liquidity risks with substantial negative net current assets and minimal equity buffers, despite growth in fixed assets. While the company is compliant with filing obligations and has stable directorship, the significant working capital deficit poses a high risk to operational stability. Further investigation into the composition of liabilities and cash flow management is essential before considering investment.

AJTA PROPERTIES LIMITED - Analysis Report

Company Number: 12843065

Analysis Date: 2025-07-19 12:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk, evidenced by large net current liabilities and working capital deficits. Despite positive net assets, current obligations far exceed current assets, raising concerns about short-term solvency.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current liabilities stood at approximately £696k as of August 2023, worsening from £541k the prior year, indicating potential cash flow difficulties meeting short-term debts.
• Heavy Reliance on Fixed Assets: Fixed assets (£744k) dominate the balance sheet; however, these are generally less liquid and may not be readily convertible to cash to cover liabilities.
• Minimal Share Capital and Equity Cushion: Share capital is nominal at £3.00 and shareholders’ funds are modest (£47.6k), which may limit the buffer to absorb operational or market shocks.

3. Positive Indicators:

• Growing Net Assets: Total assets less current liabilities increased from £25k in 2022 to £48k in 2023, reflecting some growth in asset base relative to liabilities.
• Consistent Director Presence: The company has maintained the same three directors since incorporation, suggesting stable governance at the board level.
• Timely Compliance: No overdue filings or accounts; the company appears compliant with Companies House requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess whether refinancing or restructuring is feasible.
• Review cash flow statements and bank facilities to understand liquidity management and reliance on external funding.
• Examine the quality and market value of fixed assets to evaluate realizable value if asset sales are needed.
• Confirm any related party transactions or director loans that may impact financial stability.
• Assess the business model's sustainability given the negative working capital and the real estate market conditions under SIC codes 68100 and 68209.