C M PROPERTY (WIGAN) LTD

Executive Summary

C M PROPERTY (WIGAN) LTD is a focused real estate investment entity demonstrating rapid asset growth through leveraged acquisitions but currently operating with negative equity and liquidity pressures. To capitalize on its property portfolio, the company must strategically address its capital structure and operational capacity to mitigate financial risks and pursue sustainable expansion in a competitive property market.

C M PROPERTY (WIGAN) LTD - Analysis Report

Company Number: 12479385

Analysis Date: 2025-07-20 19:16 UTC

1. Executive Summary: C M PROPERTY (WIGAN) LTD operates within the niche segment of real estate ownership and trading, focusing on letting and dealing with its own property assets. The company’s financial profile reveals significant leverage and negative equity, reflecting an aggressive asset acquisition strategy primarily funded through debt, which poses risks but also underpins its growth ambitions in a competitive property market.

2. Strategic Assets:

• Fixed Assets Base: The company has substantially increased its fixed assets from £164,800 in 2020 to over £1.6 million by 2024, indicating strategic investment in property holdings which is fundamental to its business model.
• Market Focus: Operating in the SIC categories 68100 and 68209, which involve buying, selling, and leasing own real estate, the company controls its asset portfolio, enabling potential rental income and capital appreciation.
• Ownership and Control: With a single major shareholder holding 75-100% of shares and voting rights, decision-making is streamlined, allowing for swift strategic shifts as market conditions evolve.

3. Growth Opportunities:

• Asset Portfolio Expansion: Continued acquisition of real estate assets could enhance rental income streams and market share in the Wigan area or broader Lancashire region.
• Operational Efficiency: Given the micro-entity status with minimal staff, implementing property management technologies or partnerships could improve operational scalability and margins.
• Capital Structure Optimization: Refinancing current liabilities or attracting equity investment could reduce financial risk and enable more aggressive growth or diversification.
• Market Diversification: Exploring adjacent real estate sectors (e.g., commercial leasing, specialized properties) could hedge against market volatility and increase revenue sources.

4. Strategic Risks:

• High Leverage and Negative Equity: The company’s net liabilities of approximately £410k and negative shareholders’ funds highlight financial vulnerability, potentially limiting access to further financing and increasing insolvency risk.
• Working Capital Deficit: Significant net current liabilities (~£1.09 million) suggest liquidity challenges that may constrain day-to-day operations or delay strategic projects.
• Market Sensitivity: Real estate markets are cyclical and subject to economic downturns, interest rate fluctuations, and regulatory changes that could impair asset values or rental demand.
• Limited Human Resources: With an average of one employee, the company may face capacity constraints impacting property management and growth execution.