BANYAN TREE HOMES LIMITED

Executive Summary

Banyan Tree Homes Limited is a newly incorporated micro-entity facing significant solvency and liquidity challenges as evidenced by its negative net assets and large working capital deficit. While compliance with filing obligations is maintained and ownership transparency is good, the lack of operational history and financial resources presents a high risk profile. Further due diligence on liabilities, cash flow, and business viability is recommended before investment consideration.

BANYAN TREE HOMES LIMITED - Analysis Report

Company Number: SC787969

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant net current liabilities relative to its minimal current assets, indicating solvency and liquidity risks. Being newly incorporated with a short operating history and limited financial data further elevates uncertainty.

2. Key Concerns:

• Negative Net Assets: The company’s net assets stand at -£3,514, showing the liabilities exceed assets, which may impair its ability to meet obligations.
• Severe Working Capital Deficit: Current liabilities of £23,815 vastly outweigh current assets of £301, resulting in a net current liability of -£23,514, signaling potential liquidity shortfalls.
• Early Stage & Limited Track Record: Incorporated in November 2023, the company has minimal operating history and limited financial information, restricting assessment of operational stability and cash flow sustainability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statement are up to date, indicating compliance with statutory filing requirements.
• Micro-Entity Filing: Utilization of micro-entity provisions suggests a small operational scale with minimal administrative burden.
• Clearly Defined Control Structure: Several persons with significant control are properly registered, indicating transparency in ownership and governance.

4. Due Diligence Notes:

• Investigate the source and nature of current liabilities to assess whether these are short-term obligations that can be renegotiated or paid off.
• Review cash flow projections and funding plans, especially given the small cash/current asset base relative to liabilities.
• Understand the business model and market prospects in the real estate development/leasing sector to evaluate operational sustainability.
• Confirm no director disqualifications or governance issues beyond those disclosed.
• Monitor future filings for any material changes in financial position or governance.