ARABY PROPERTY DEVELOPMENTS LTD

Executive Summary

Araby Property Developments Ltd displays significant solvency and liquidity risks, evidenced by increasing net liabilities and substantial debts. While compliance with statutory filings and tangible fixed assets provide some stability, the ongoing working capital deficits and reliance on director loans raise concerns about operational sustainability. Further due diligence on cash flow, loan terms, and business prospects is strongly recommended before considering investment.

ARABY PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 12792395

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent and increasing net liabilities, negative shareholders' funds, and significant current and long-term liabilities far exceeding current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities increased from approximately £214k in 2023 to £226k in 2024, indicating ongoing losses or capital erosion.
• Severe Working Capital Deficit: Net current liabilities stand at £6,612 in 2024, though improved from a much larger deficit in 2023, signaling potential liquidity stress to meet short-term obligations.
• Substantial Debt Exposure: Long-term creditors, including bank loans (£146k) and directors’ loans (£145k), total nearly £292k, indicating heavy reliance on external and related-party financing that may not be sustainable without operational profitability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with statutory filing obligations.
• Stable Tangible Fixed Assets: The company holds tangible fixed assets valued at approximately £72k, primarily land and buildings, which could support asset-based lending or sale if needed.
• Single Shareholder Control: Full ownership and control by Mr. Andrew John Raby may simplify decision-making and potential recapitalization efforts.

4. Due Diligence Notes:

• Examine Cash Flow and Profit & Loss Details: The absence of delivered profit & loss accounts limits insight into operational performance and cash flow trends—these should be requested.
• Assess Director and Bank Loan Terms: Investigate the nature, terms, and repayment schedules of director loans and bank loans to evaluate refinancing risks and creditor relationships.
• Review Business Plan and Market Conditions: Given the company’s activity in property development and real estate trading, understanding current project pipeline, market demand, and funding strategy is essential for assessing future viability.
• Confirm No Related Party or Governance Issues: Verify if any director conduct records or related party transactions might pose regulatory or reputational concerns.