AUGUSTA ESTATES LIMITED

Executive Summary

Augusta Estates Limited currently presents a high risk profile due to persistent negative net assets and a substantial working capital deficit, which threaten its solvency and liquidity. While the company remains compliant with filing obligations and holds fixed assets, the absence of employees and operational clarity raise concerns about its sustainability. Further investigation into asset valuation, liability structure, and business model is essential to fully assess investment risk.

AUGUSTA ESTATES LIMITED - Analysis Report

Company Number: 14719629

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent net current liabilities and negative net assets over multiple years. The financials suggest inability to cover short-term liabilities with current assets, indicating potential distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company shows net liabilities of £54,532 as of the latest accounts, worsening from prior years, indicating erosion of equity and potential insolvency.
• Severe Working Capital Deficit: Current liabilities exceed current assets by over £380,000, highlighting a critical liquidity shortfall that could impair operational continuity.
• Zero Employees and Limited Operational Scale: With no employees reported and minimal current assets, the company’s operational capacity and revenue-generating ability appear limited, raising questions about sustainability.

3. Positive Indicators:

• Stable Fixed Assets: The fixed assets remain constant at £327,780 across reported years, which may represent owned property or long-term investments that could be leveraged or sold to alleviate financial strain.
• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating regulatory compliance and transparency.
• Clear Ownership and Control: Single shareholder/director control (Joon-Jae Bahk) simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the type, liquidity, and market value of fixed assets to assess their potential to address negative net asset position.
• Source and Terms of Current Liabilities: Analyze creditor composition and payment terms to understand the immediacy of liabilities and renegotiation possibilities.
• Business Model and Revenue Streams: Clarify how the company generates income given zero reported employees and whether it is operational or holding assets passively.
• Director Background and Financial Support: Review the director’s financial capacity and willingness to support the company through capital injections or guarantees.
• Future Business Plans: Assess strategic plans to improve liquidity, profitability, or restructure debt to ensure operational viability.