Company Number: 13260275

Analysis Date: 2025-07-29 15:55 UTC

1. Risk Rating: MEDIUM
   Boruj Properties Limited shows a stable net asset position supported by investment property valuation increases, but significant negative working capital and high current liabilities relative to cash reserves present liquidity and short-term solvency concerns that moderate the risk assessment.

2. Key Concerns:

• Liquidity shortfall: Negative net current assets of approximately £320K at year-end indicate potential difficulty in meeting short-term obligations, especially with cash of only £13.7K against current liabilities of £334K.
• Reliance on director loans: The company owes a substantial interest-free loan of over £331K to the director, which is repayable on demand, posing refinancing or repayment risk if the director’s support is withdrawn.
• Limited operational scale: With just one employee and no income statement disclosed, there is limited evidence of diversified revenue streams or operational robustness beyond property holdings.

3. Positive Indicators:

• Positive net assets growth: Net assets increased from £75.9K to £96.4K year-on-year, driven by revaluation gains on investment property, reflecting potential underlying asset value appreciation.
• No overdue filings: The company is current with both accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Sole control by director with substantial shareholding: Concentrated ownership can enable swift decision-making and potentially stable management oversight.

4. Due Diligence Notes:

• Review cash flow projections and creditor payment terms to assess how the company plans to manage the significant short-term liabilities.
• Investigate the nature and terms of the director loan, including any formal agreements and the director’s willingness and capacity to maintain this support.
• Obtain detailed income and expenditure data to understand operational revenue sources, profitability, and sustainability beyond property valuation gains.
• Confirm valuation methodology and frequency for investment property to validate asset values reported on the balance sheet.
• Evaluate any contingent liabilities or off-balance sheet risks that may not be disclosed in the accounts.