ANDREW THOMAS ESTATE AGENTS LTD

Executive Summary

Andrew Thomas Estate Agents Ltd exhibits high financial risk with significant negative net assets and worsening liquidity shortfalls. While regulatory compliance is maintained, operational sustainability is questionable due to heavy reliance on director loans and persistent working capital deficits. Careful scrutiny of cash flow management and capital structure is recommended before any investment consideration.

ANDREW THOMAS ESTATE AGENTS LTD - Analysis Report

Company Number: 14358401

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity risks, as evidenced by persistent and increasing net liabilities and negative net current assets. The magnitude of current liabilities far exceeds current assets, indicating difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities increased from approximately £29k in 2023 to over £51k in 2024, reflecting ongoing accumulation of losses or undercapitalization.
• Severe Working Capital Deficiency: Net current liabilities stood at £51,275 in 2024, nearly double the prior year’s negative working capital. This points to acute liquidity constraints and potential cash flow difficulties.
• Director’s Loan Balance: The company owes £43,900 to a director, which is non-interest bearing with no fixed repayment terms. This reliance on director funding may mask underlying cash flow issues and indicates potential vulnerability if the director withdraws support.

3. Positive Indicators:

• Timely Filing and Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and good governance in this respect.
• Micro-Entity Status: Being micro-sized limits filing complexity and may reduce administrative burdens.
• Operational Continuity: The company remains active with two directors and maintains business operations in real estate agency services.

4. Due Diligence Notes:

• Investigate the nature and sustainability of director loans and any plans for formalizing repayment or capital restructuring.
• Review cash flow forecasts and creditor payment schedules to assess imminent liquidity pressures.
• Assess the business model viability given the recurring losses and negative equity, including revenue generation and cost management strategies.
• Confirm no hidden contingent liabilities or off-balance sheet obligations that may exacerbate financial distress.
• Consider the background and track record of directors, especially given the financial condition and to identify any potential governance or operational risks.