ALLANREID PROPERTIES LTD

Executive Summary

ALLANREID PROPERTIES LTD shows critical signs of financial dormancy with negligible assets, no employees, and minimal equity over multiple years. The company currently lacks operational and financial substance necessary for sustainable business activity in the real estate sector. Immediate strategic action is needed to inject capital, acquire assets, or formally reassess the company’s purpose to avoid financial distress or regulatory issues.

ALLANREID PROPERTIES LTD - Analysis Report

Company Number: SC711507

Analysis Date: 2025-07-29 16:05 UTC

Financial Health Assessment of ALLANREID PROPERTIES LTD

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1. Financial Health Score: F

Explanation:
The company’s financial metrics consistently show a nominal value of £1 across all key asset and equity categories over four years. This is a critical red flag indicating a lack of operational substance, assets, or capital investment. Essentially, the company is "financially dormant" despite being active, which suggests it may not be conducting meaningful business activities or generating revenue.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1	Extremely low; indicates virtually no liquid assets or working capital to meet short-term obligations.
Net Current Assets	1	Same as current assets, no liabilities reduce this figure; however, this is a trivial amount.
Total Assets Less Current Liabilities	1	Reflects total net assets; value is negligible, indicating no significant fixed or current assets.
Shareholders’ Funds	1	Equity capital is virtually non-existent, suggesting no shareholder investment or retained earnings.
Average Number of Employees	0	No staff employed, indicating minimal or no operational activity.

Additional Observations:

• No audit required or performed, common for micro-entities but limits external assurance.
• Single director and sole shareholder with 75-100% control, indicating centralized control but no diversification in ownership.
• Industry classification: Letting and operating own or leased real estate, which typically requires asset holdings; however, no assets are reported.

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3. Diagnosis

• Symptoms of Financial Distress or Dormancy:
  The company’s financial statements reveal a "body" lacking vital organs—no assets beyond £1, no working capital, no employees, and no operational scale. This is a classic symptom of a company that is either dormant in practice or has failed to commence meaningful trading activities.
• Lack of Financial Vitality:
  Healthy companies in real estate typically show tangible fixed assets (properties), rental income, or investment holdings. The absence of such assets suggests either the company has not begun operations or is not maintaining its business affairs effectively.
• Potential Risks:
  • Risk of insolvency if any liabilities or expenses arise without assets or income to cover them.
  • Minimal financial buffer and no cash flow to support operations or growth.
  • Limited attractiveness to lenders, investors, or partners due to lack of financial substance.

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4. Recommendations

• Immediate Financial Injection or Asset Acquisition:
  To gain financial vitality, the company should consider capital raising or acquiring tangible assets aligned with its real estate operations. Without assets or working capital, the company remains non-operational.
• Operational Review and Business Plan Development:
  Reassess the company’s business model and strategies to ensure there is a clear path to generate income and assets. Consider whether the company is intended to remain dormant or should be wound up if inactive.
• Enhance Financial Reporting and Transparency:
  Although exempt from audit, consider voluntary audit or professional financial review to build credibility with stakeholders.
• Consideration of Dormant Company Status:
  If the company is not trading, filing dormant accounts may reduce administrative burden and reflect the true state of affairs more accurately.
• Director Oversight and Compliance:
  The sole director should ensure compliance with Companies House requirements and consider formalizing plans for future business activity or closure.

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Executive Summary