AS PRIME PROPERTIES LTD

Executive Summary

AS Prime Properties Ltd shows a concerning financial profile characterized by sustained negative working capital and shareholders’ funds, highlighting significant solvency and liquidity risks. While the company maintains regulatory compliance and stable management, the heavy reliance on trade debtors and minimal cash reserves warrant further investigation to assess operational viability and financial sustainability.

AS PRIME PROPERTIES LTD - Analysis Report

Company Number: 12618434

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, as evidenced by persistent negative net current assets and shareholders’ funds over multiple years. The scale of current liabilities exceeding current assets by a substantial margin, coupled with minimal cash reserves, presents a material risk of inability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company has reported net current liabilities each year since incorporation, worsening from a small positive working capital of £100 at inception to a deficit of £37,795 as of May 2024. This indicates ongoing liquidity stress.

• Persistent Shareholders’ Deficit: Shareholders’ funds have been negative since the first financial year, reaching a deficit of £37,795 most recently. This reflects accumulated losses or undercapitalization, raising solvency questions.

• High Debtors vs. Low Cash: Debtors consistently represent the majority of current assets (£223,274), but actual cash balances are very low (£2,435 in 2024). This mismatch suggests potential cash flow issues if debtor collections are delayed or impaired.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with both annual accounts and confirmation statements, indicating regulatory compliance and no immediate governance concerns related to filings.

• Stable Ownership and Management: The two directors and significant shareholders have remained consistent since incorporation, suggesting stable control and possibly aligned interests.

• No Indication of Insolvency Proceedings: The company remains active and is not under liquidation, administration, or receivership, which implies no formal insolvency processes are underway at present.

4. Due Diligence Notes:

• Quality and Collectability of Debtors: Investigate the nature, age, and recoverability of trade debtors totaling over £223k, as these significantly impact liquidity and risk exposure.

• Underlying Business Performance and Cash Flow: Review management accounts or cash flow statements to assess operational profitability and the company’s ability to generate cash to service liabilities.

• Capital Structure and Funding Arrangements: Clarify the origins of the negative equity position, including any shareholder loans or related-party transactions, and evaluate plans for recapitalization or debt restructuring.

• Director and Shareholder Backgrounds: Conduct background checks on key individuals to identify any past director disqualifications or financial difficulties that may affect governance.

• Contingent Liabilities or Off-Balance Sheet Risks: Confirm whether any contingent liabilities exist that could further impair financial stability.

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