ALGOA PROPERTIES LIMITED

Executive Summary

ALGOA PROPERTIES LIMITED demonstrates a high risk profile primarily due to its negligible net assets and disproportionate dividend payments. Although regulatory compliance is maintained and directors appear fit, the financials suggest significant solvency and liquidity vulnerabilities. Further in-depth investigation into related party dealings and dividend policy is essential to ascertain the company’s true financial stability and operational sustainability.

ALGOA PROPERTIES LIMITED - Analysis Report

Company Number: 14718389

Analysis Date: 2025-07-29 19:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with minimal net assets and current liabilities equaling current assets. The very limited financial data and large dividends paid relative to equity raise red flags regarding operational sustainability and financial management.

2. Key Concerns:

• Minimal Net Assets: The company’s net assets are only £1, indicating almost no equity buffer to absorb losses or meet obligations.
• Dividends Exceeding Equity: Dividends of £2,710,948 were paid during the period despite negligible shareholders’ funds, which suggests potential financial strain or improper distribution of funds.
• High Related Party Debt: £11,017 owed to group undertakings and related companies indicates reliance on intra-group financing, which may mask underlying liquidity issues.

3. Positive Indicators:

• Regulatory Compliance: No overdue filings or accounts are reported, indicating compliance with statutory filing requirements.
• Active Status: The company is active and not in liquidation or administration, suggesting ongoing operations.
• Experienced Directors: Directors appear stable with no public disqualifications or adverse records.

4. Due Diligence Notes:

• Investigate the rationale and source of the large dividends paid relative to the company’s equity and cash position.
• Review the nature and terms of related party transactions and intra-group balances for potential financial support or risk transfer.
• Assess the business model and revenue streams given the very limited assets and liabilities reported, to determine operational viability.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments not disclosed.
• Evaluate the structure and financial strength of the parent company Billingham & Kite Limited, which controls the company.