AXIS4 PROPERTIES LIMITED

Executive Summary

AXIS4 PROPERTIES LIMITED shows a high risk profile driven by negative net equity and liabilities exceeding assets, which raises solvency and liquidity concerns. Although regulatory filings are current and fixed assets stable, the absence of employees and ongoing financial deficits suggest operational challenges. Further investigation into asset realizability and business viability is essential before considering investment.

AXIS4 PROPERTIES LIMITED - Analysis Report

Company Number: 13215037

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by persistent negative shareholders’ funds and liabilities exceeding current assets. The micro-entity scale combined with negative equity and relatively high creditor balances signals elevated financial stress.

2. Key Concerns:

• Negative Shareholders' Funds: The company’s equity remains negative (£-2,196 in 2024), indicating accumulated losses or liabilities exceeding assets, which undermines solvency.
• High Current and Long-term Liabilities vs. Assets: Current liabilities (£71,322) and creditors due after one year (£118,019) significantly exceed current assets (£24,862), flagging liquidity pressure and potential difficulty in meeting short-term obligations.
• No Employees and Limited Operational Data: The absence of employees and minimal financial activity reported suggests limited operational capacity or scale, raising questions about business sustainability and revenue generation.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain relatively stable around £163k, indicating some tangible asset backing which may provide collateral value.
• Timely Filing Compliance: The company has filed its accounts and confirmation statements on time with no overdue filings, suggesting regulatory compliance and governance discipline.
• Clear Ownership and Control: Ownership and control are transparent, with a single individual holding 75-100% of shares and voting rights, potentially facilitating decisive management action.

4. Due Diligence Notes:

• Verify the nature and valuation of fixed assets to assess their realizable value under distress.
• Investigate the composition and terms of long-term creditors to understand refinancing risk or covenant pressures.
• Review the company’s revenue streams, cash flow generation, and business model viability given no reported employees and ongoing losses.
• Evaluate any contingent liabilities or related-party transactions not disclosed in the micro-entity accounts.
• Confirm director intentions and plans to restore positive equity or restructure liabilities.