ALPHA-OMEGA PROPERTIES (CHESHIRE) LIMITED

Executive Summary

Alpha-Omega Properties (Cheshire) Limited exhibits high financial risk due to persistent negative net assets and significant current liabilities surpassing current assets, indicating potential solvency and liquidity challenges. While the fixed asset base aligns with its real estate activity and statutory filings are up to date, the lack of employee presence and absence of detailed financial performance data raise concerns over operational viability. Further investigation into asset realizability, revenue streams, and director plans is recommended to clarify the company’s financial health and outlook.

ALPHA-OMEGA PROPERTIES (CHESHIRE) LIMITED - Analysis Report

Company Number: 13910818

Analysis Date: 2025-07-20 13:48 UTC

1. Risk Rating: HIGH
   This rating is based primarily on the company’s negative net assets position, the scale of current and long-term liabilities relative to assets, and ongoing erosion of shareholder funds despite being a recently incorporated entity.

2. Key Concerns:

• Solvency Risk: The company reported net liabilities of £29,412 as of 31 July 2024, worsening from £5,690 the prior year, indicating the company’s liabilities exceed its assets and raising concerns about its ability to meet obligations in the long term.
• Liquidity Concerns: Current liabilities (£562,958) vastly exceed current assets (£3,955), resulting in a significant net current liability (~£558,000). This suggests potential cash flow issues and challenges in meeting short-term debts as they fall due.
• Operational Stability: The company has no employees apart from the director, no reported turnover or profit and loss account details, and its financial statements follow micro-entity provisions with no audit. This limited operational footprint and lack of financial transparency make it difficult to assess business sustainability or revenue generation capacity.

3. Positive Indicators:

• Fixed Assets Base: The company holds fixed assets valued at £577,567, which may provide collateral value or represent investment in property consistent with its SIC code (real estate letting/operation).
• Compliance with Filing: The company has timely filed its accounts and confirmation statement, indicating adherence to statutory requirements so far.
• Single Controlling Person: The sole director and 75-100% controlling shareholder (Kenneth Raymond Lawton) provides clear accountability and control, reducing risks related to governance disputes.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets to determine realizable value and whether encumbrances or liens exist.
• Review detailed cash flow statements and any underlying contracts or leases that generate income to assess sustainability of operations and ability to service liabilities.
• Confirm any related party transactions or director loans that may affect the company’s financial position.
• Assess the absence of employees and profitability data to understand if the company is currently generating revenue or reliant on external funding.
• Evaluate the director’s plans or strategies to address the negative equity and current liquidity deficit.