AUSTEN PROPERTY GROUP LTD

Executive Summary

Austen Property Group Ltd displays significant financial distress characterized by negative net assets and poor liquidity metrics, raising high solvency risk. Although regulatory compliance is maintained and governance appears stable, critical concerns around asset base erosion and working capital shortages warrant thorough due diligence before investment consideration.

AUSTEN PROPERTY GROUP LTD - Analysis Report

Company Number: 12594410

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant and persistent net liability positions over multiple years, negative working capital, and no fixed assets in the most recent year, indicating substantial solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities exceeding £22,000 in the latest year, with shareholders’ funds similarly negative, suggesting erosion of capital and insolvency risk.
• Negative Working Capital: Current liabilities significantly exceed current assets (£28,456 vs. £6,445 in 2024), pointing to potential difficulties in meeting short-term obligations and cash flow constraints.
• Decline in Fixed Assets: Fixed assets dropped from approximately £95,712 in prior years to zero in 2024, which may reflect asset disposals or write-downs, raising questions about operational sustainability and ongoing asset base.

3. Positive Indicators:

• Filing Compliance: The company is up to date on its accounts and confirmation statement filings, with no overdue returns, indicating compliance with regulatory requirements.
• Stable Directorship: The directors have been in place since incorporation with no indication of disqualifications or governance issues.
• Small Employee Base: Maintaining an average of 2 employees may reflect a lean cost structure, which could be advantageous if the company can stabilize financially.

4. Due Diligence Notes:

• Investigate reasons behind the complete disappearance of fixed assets in the 2024 accounts and whether this impacts the company’s ability to generate revenue.
• Review the company’s cash flow statements and creditor arrangements to understand how it is managing liquidity pressures, particularly with current liabilities far exceeding current assets.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate solvency risks.
• Clarify the business model and revenue streams given the micro-entity status and persistent losses reflected in shareholders’ funds.
• Evaluate directors’ plans for recapitalization or restructuring to address negative equity.