BOKWA PROPERTY LTD

Executive Summary

Bokwa Property Ltd, a newly incorporated micro-entity operating in real estate management, currently reports a negative net asset position but maintains positive net current assets, suggesting short-term liquidity is adequate. The company’s early stage and outstanding long-term liabilities present moderate solvency and operational risks that require further examination. Compliance with statutory filings and active directors support regulatory stability at this stage.

BOKWA PROPERTY LTD - Analysis Report

Company Number: 14809256

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   The company shows net liabilities and negative shareholders' funds within its first financial year, indicating an initial capital deficit. However, it maintains current assets exceeding current liabilities, which suggests some short-term liquidity is present. The limited operating history and negative equity pose moderate solvency concerns but no immediate distress signals.

2. Key Concerns:

• Negative Net Assets: The company reports net liabilities of £5,133, reflecting that total liabilities exceed total assets, which warrants monitoring of capital adequacy.
• Long-term Creditors: £40,000 is classified as creditors falling due after more than one year, indicating debt obligations that will impact future cash flow and solvency.
• Early Stage Operation: Incorporated in April 2023, the company has limited operational history, increasing uncertainty about its ability to generate sustainable profits and cash flow.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: With current assets of £34,867 surpassing current liabilities of £0 (current liabilities figure not separately shown but net current assets are positive), the company appears able to meet short-term obligations.
• Compliance: The company is up to date with all statutory filings, including accounts and confirmation statements, indicating good regulatory compliance and governance.
• Experienced Directors: Both directors are UK-based and active, reducing governance risk associated with absentee or disqualified directors.

4. Due Diligence Notes:

• Investigate the nature and terms of the £40,000 long-term creditor balance to assess repayment schedules and covenants.
• Review detailed cash flow projections and budgets to understand how the company intends to address the negative net asset position.
• Evaluate the business model and contracts underpinning the real estate management and letting activities for revenue visibility.
• Confirm any off-balance-sheet liabilities or contingent risks not disclosed in the micro-entity accounts.
• Assess whether additional funding or capital injections are planned or have occurred since the last accounts date.