Company Number: 13240230

Analysis Date: 2025-07-29 17:01 UTC

1. Risk Rating: MEDIUM

Justification: Arayn T Properties Limited shows positive net current assets and increasing shareholders' funds over the past years, indicating some financial stability. However, the company has minimal cash on hand (£1), with current assets largely composed of debtors. The reliance on debtors and directors’ current accounts as creditors suggests potential liquidity constraints that could pose risks in meeting short-term obligations.

2. Key Concerns:

• Liquidity Risk: The company holds almost no cash, with current assets primarily in debtors. This may indicate difficulty in converting assets to cash promptly, raising concerns over the ability to pay immediate liabilities.
• Creditor Composition: Significant amounts are owed to directors (£7,724 in 2024), which may indicate reliance on director funding rather than external financing, potentially masking underlying cash flow issues.
• Limited Financial Transparency: The company is exempt from audit and does not file an income statement, limiting insight into profitability and operational performance, which restricts a full assessment of sustainability.

3. Positive Indicators:

• Growing Net Current Assets and Shareholders’ Funds: From 2021 to 2024, net current assets increased from £1,929 to £10,992 and shareholders’ funds rose correspondingly, showing accumulated retained earnings and improving equity.
• Up-to-date Filings: The company is current with both accounts and confirmation statement filings, demonstrating compliance with Companies House requirements.
• Simple Corporate Structure: A single director with no indications of disqualifications or governance issues, suggesting straightforward management.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors to assess quality of current assets and timing of cash inflows.
• Review director loans and current account balances for terms and repayment plans to understand funding structure and creditor risk.
• Request profit and loss statements or management accounts to evaluate operational performance and sustainability beyond the balance sheet.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could affect solvency.
• Assess tax liabilities and provisions given corporation tax creditor present in current liabilities.