ARIDAN HOMES AND PROPERTY LIMITED

Executive Summary

Aridan Homes and Property Limited is a newly incorporated small private company currently exhibiting negative net assets and net current assets, highlighting immediate solvency and liquidity risks. While statutory filings are up to date and operationally the company is compliant, the negative working capital and sole director structure present concerns for financial stability and operational resilience. Further due diligence should focus on the nature of liabilities, cash flow viability, and business model sustainability to evaluate the company's prospects.

ARIDAN HOMES AND PROPERTY LIMITED - Analysis Report

Company Number: 14837632

Analysis Date: 2025-07-29 16:50 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets indicating insolvency at the balance sheet date. The liabilities exceed current assets, suggesting an inability to meet short-term obligations without additional capital or refinancing.

2. Key Concerns:

• Negative equity and net current assets (-£2,281) in the first year of operation pose immediate solvency risks.
• Current liabilities (£51,409) exceed cash and current assets (£49,128), indicating potential liquidity constraints.
• Sole director and 100% shareholder is also the only employee, which may raise operational dependency and governance risks.

3. Positive Indicators:

• Company status is active with no overdue filings or accounts, showing compliance with statutory requirements so far.
• The company is categorized as a small entity and has taken advantage of the small companies reporting regime, reducing administrative burdens.
• The director is a professional (registered midwife), which may suggest some business discipline, though unrelated to core industry expertise.

4. Due Diligence Notes:

• Investigate the nature and timing of the £51,409 current liabilities to understand if these are trade payables, loans, or other obligations and their repayment terms.
• Review cash flow projections and funding plans to assess how the company intends to resolve the negative working capital position.
• Examine business model sustainability, client base, and revenue pipeline given the lack of turnover or profit data in the initial accounts.
• Confirm whether the director intends to inject further capital or secure external financing to support operations.
• Assess whether the company’s SIC code (68209 - Other letting and operating of own or leased real estate) reflects an asset-light business or if there are undisclosed property holdings.