BANN PROPERTIES LIMITED

Executive Summary

Bann Properties Limited exhibits high financial risk due to negative net assets and substantial current liabilities exceeding current assets. While regulatory compliance and audit quality are reassuring, the company’s liquidity and solvency are compromised, warranting careful scrutiny of liabilities and operational cash flows. Further detailed financial information and management plans are essential to evaluate prospects for financial recovery.

BANN PROPERTIES LIMITED - Analysis Report

Company Number: NI691849

Analysis Date: 2025-07-29 17:12 UTC

1. Risk Rating: HIGH
   Given the current financial position showing net liabilities of £68,766 and a large imbalance between current assets (£6,152) and current liabilities (£906,117), the company faces significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are negative (£-68,766), indicating that liabilities exceed assets, which is a critical solvency red flag.
• Severe Working Capital Deficit: Current liabilities vastly exceed current assets by approximately £900,000, suggesting immediate liquidity issues and potential inability to meet short-term obligations.
• Limited Operational History and Scale: Incorporated in October 2022 with micro-entity reporting and only two employees, the company’s operational stability and business sustainability remain unproven, especially given the financial strain.

3. Positive Indicators:

• Unqualified Audit Report: The accounts were audited with an unqualified opinion, which supports the accuracy and compliance of the financial reporting.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good regulatory compliance and governance practices.
• Ownership and Control Concentrated: A single entity, Mcmu Holdings Ltd, controls 75-100% of shares and voting rights, which may facilitate decisive management actions.

4. Due Diligence Notes:

• Review Nature of Current Liabilities: Investigate the composition and maturity of the £906,117 current liabilities to understand the immediate cash outflow requirements.
• Examine Cash Flow and Profitability Details: Since the profit and loss account is omitted, request underlying income statement and cash flow data to assess operational performance and financing activities.
• Assess Asset Valuation: Confirm the valuation and liquidity of fixed assets (£831,199) to determine if these can be leveraged or sold to improve solvency.
• Evaluate Directors’ Plans: Obtain management’s strategic plans or forecasts to address the financial deficit and liquidity issues.
• Check Related Party Transactions: Given common addresses and significant control by Mcmu Holdings Ltd, assess any related party transactions or loans impacting financial position.