BOULAKIA LIMITED

Executive Summary

** Boulakia Limited is a micro-scale real estate letting company with a concentrated asset base but currently exhibits negative equity and liquidity challenges, which are atypical for the sector where asset-backed equity is standard. Market pressures from rising costs and regulatory demands may further strain its financial position. Overall, the company operates as a niche player with limited scale and financial resilience compared to typical industry competitors. **

BOULAKIA LIMITED - Analysis Report

Company Number: 13320502

Analysis Date: 2025-07-29 18:45 UTC

1. Industry Classification
   Boulakia Limited operates within the SIC code 68209, classified as "Other letting and operating of own or leased real estate." This sector primarily involves companies managing real estate assets for rental income or leasing operations, often focusing on property management, leasing, or holding activities rather than property development or sales. Key characteristics of this sector include long-term asset holdings, moderate capital intensity, and dependency on rental market dynamics and property valuations.

2. Relative Performance
   Boulakia Limited is categorized as a Micro entity, reflecting its relatively small scale with minimal turnover thresholds and simplified reporting obligations. Its balance sheet shows fixed assets valued at approximately £1.06 million, which aligns with the nature of property holding businesses where real estate assets dominate. However, the company has reported net liabilities of £81,268 for the 2024 financial year, indicating a negative equity position. This contrasts with typical real estate letting companies which, even at micro scale, often maintain positive shareholder funds due to asset-backed equity. The company's current liabilities (£665k) significantly exceed current assets (£10.8k), resulting in substantial net current liabilities. Compared to industry norms, this weak liquidity position suggests financial stress or reliance on long-term financing structures.

3. Sector Trends Impact
   The real estate letting sector in the UK has been influenced by several market dynamics in recent years, including fluctuating property prices, changes in rental demand post-pandemic, and regulatory shifts such as increased landlord compliance requirements and potential rent control debates. Interest rate increases have also impacted financing costs and property valuations. For a company like Boulakia Limited, these trends could exert pressure on rental income stability and asset valuations. Additionally, the sector is witnessing a push towards sustainability and energy efficiency standards, which may require capital investment in owned properties. Given its micro scale and financial position, Boulakia may face challenges adapting to these evolving sector requirements.

4. Competitive Positioning
   As a micro private limited company with a single director and no employees, Boulakia Limited appears to be a niche player, possibly operating a small portfolio of properties rather than engaging in broad market competition. The negative equity and high current liabilities relative to current assets indicate liquidity constraints and financial vulnerability compared to more established letting companies that typically maintain stronger balance sheets and diversified income streams. However, the fixed asset base of over £1 million suggests a tangible asset foundation that could be leveraged for refinancing or restructuring. The lack of audit and limited disclosure aligns with micro entity reporting but reduces transparency for external stakeholders assessing competitive strength.

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