AZALEA PROPERTY SERVICES LTD

Executive Summary

AZALEA PROPERTY SERVICES LTD demonstrates significant financial distress as evidenced by negative equity and current liabilities far exceeding current assets at the latest year end. While statutory filings are up to date and the business scale remains micro, the rapid deterioration in solvency and liquidity positions poses a high risk to operational continuity without corrective action. Further investigation into creditor terms and cash flows is recommended to clarify the company’s financial stability and viability.

AZALEA PROPERTY SERVICES LTD - Analysis Report

Company Number: 13101933

Analysis Date: 2025-07-20 15:19 UTC

1. Risk Rating: HIGH
   The company exhibits a concerning solvency position with negative shareholders’ funds of £4,311 as of the latest financial year end 31 December 2023, coupled with current liabilities significantly exceeding current assets. This raises immediate questions regarding its ability to meet short-term obligations.

2. Key Concerns:

• Negative Equity and Net Current Liabilities: Shareholders’ funds declined from positive £1,063 in 2022 to negative £4,311 in 2023, indicating accumulated losses or write-downs. Current liabilities of £5,393 exceed current assets of £1,690 by a large margin, reflecting poor liquidity and working capital deficiency.
• Rapid Deterioration in Financial Position: The jump in current liabilities from £105 in 2022 to £5,393 in 2023 is significant and unexplained within the provided data, suggesting potentially increased borrowing or delayed payables that may strain cash flows.
• Single Director and Shareholder Concentration: Mr. Billy Roy Leslie Davies controls 100% of shares and voting rights and is the sole director, which may concentrate operational and governance risks without broader oversight or independent management.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and reducing regulatory risk.
• Micro-Entity Status: The company remains small in scale, which may limit complexity and operational overhead.
• Stable Employee Base: Employment of one person consistently suggests controlled staffing and possibly limited operational scale, which can be easier to manage.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp increase in current liabilities between 2022 and 2023, including creditor aging and any contingent liabilities.
• Review cash flow statements or bank reconciliations (if available) to assess liquidity management and examine if there are any overdue payments or collection issues.
• Confirm any related party transactions or director loans that may affect the financial position.
• Assess future business plans or capital injection strategies from the sole director or external sources to restore solvency.
• Verify any risk of insolvency proceedings or creditor actions given the negative net assets and liquidity shortfall.