ANL PROPERTIES LIMITED

Executive Summary

ANL PROPERTIES LIMITED exhibits a medium level of financial risk due to negative working capital and high indebtedness relative to equity despite holding substantial property assets. While compliance with filing deadlines and improving shareholder funds are positive, liquidity constraints and related party loan arrangements warrant further scrutiny. Detailed examination of debt terms, asset valuations, and cash flow projections is recommended to fully assess the company’s operational viability and solvency risk.

ANL PROPERTIES LIMITED - Analysis Report

Company Number: 12816866

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: MEDIUM

The company shows a moderately risky financial profile primarily due to its negative net current assets and significant long-term liabilities relative to its total assets. However, it maintains active status with timely filings and has a tangible asset base backing liabilities, which mitigates this risk somewhat.

2. Key Concerns:

• Liquidity risk is evident as current liabilities (£15,649) exceed current assets (£3,704) resulting in negative net current assets of £(11,945) for 2024, which may constrain the company’s ability to meet short-term obligations.
• The company carries substantial long-term debt (£207,829), including a secured loan of approximately £82,829 with Kent Reliance. This level of gearing relative to net assets (£15,397) could pressure solvency if cash flows weaken.
• Related party transactions with a director loan account balance of ~£140k, interest-free, raise governance and operational sustainability questions, especially as no interest is charged and the loan is sizable compared to equity.

3. Positive Indicators:

• The company holds significant fixed assets (£239,778), mainly property, which provides collateral value supporting its borrowing.
• Shareholders’ funds have increased from negative in earlier years to positive £15,397 in 2024, indicating some recovery in equity position.
• The company is compliant with filing requirements, with no overdue accounts or confirmation statements, suggesting adequate governance on statutory matters.
• The property asset valuation has appreciated modestly (£7,000 increase), supporting asset backing.

4. Due Diligence Notes:

• Verify the nature, terms, and repayment plans of the £125,000 "other creditors" falling due after more than one year to assess the risk profile and potential impact on cash flows.
• Investigate the director loan account details, including repayment terms, potential conflicts of interest, and whether the lack of interest is sustainable or could impair financial health.
• Confirm the accuracy and basis of the property valuations conducted by non-professional valuers to assess asset reliability and possible impairment risks.
• Review cash flow forecasts and rent roll or income streams from letting activities to evaluate operational sustainability and ability to service debt.
• Assess any contingent liabilities or provisions (noted as £4,607 in 2024) for potential financial impact.