CALI BON LTD

Executive Summary

Cali Bon Ltd is a micro-entity operating in the niche segment of property letting, characterized by a small fixed asset base and significant short-term liabilities that have resulted in negative net equity. This financial structure contrasts with more stable industry peers who typically maintain positive net assets and stronger liquidity. Current sector trends such as rising interest rates and regulatory changes present additional challenges for its small-scale, capital-intensive business model.

CALI BON LTD - Analysis Report

Company Number: 14368180

Analysis Date: 2025-07-29 14:03 UTC

1. Industry Classification
   Cali Bon Ltd operates under SIC code 68209, classified as "Other letting and operating of own or leased real estate." This sector falls within the broader real estate activities industry, which includes owning, leasing, and managing real estate assets, typically generating revenue from rental income or property management. Key characteristics of this sector include capital-intensive asset bases, reliance on stable or appreciating property values, and exposure to macroeconomic factors such as interest rates, property market cycles, and regulatory changes affecting leasing and property ownership.

2. Relative Performance
   As a micro-entity with minimal turnover and no employees, Cali Bon Ltd is at the smallest end of the real estate sector spectrum. Its financials show fixed assets of approximately £136k, which presumably represent property holdings or related long-term assets. However, it has a negative net asset position of about £4.9k as of 30 September 2024, caused by current liabilities significantly exceeding current assets (£141k liabilities vs. £1k assets). This indicates short-term liquidity challenges or financing arrangements that place substantial debt or creditor obligations due within a year. Compared to typical real estate letting companies that often have positive equity and stronger working capital positions, this performance is weak and not aligned with the norm for sustainable operations. Industry standards usually show stable or growing asset bases with positive net assets given the reliance on property value appreciation.

3. Sector Trends Impact
   The UK real estate letting sector has been influenced recently by rising interest rates, inflationary pressures, and variable demand for commercial and residential properties. In particular, increased borrowing costs have tightened financing conditions for property companies, affecting cash flow and valuation. Additionally, regulatory changes around tenant protections and lease terms have altered operational dynamics. For a micro real estate entity like Cali Bon Ltd, these trends may exacerbate liquidity risks and limit growth prospects unless the company has secured long-term leases or stable income streams. On the positive side, if property values remain stable or increase, the asset base might appreciate, improving net worth over time.

4. Competitive Positioning
   Cali Bon Ltd appears to be a niche, small-scale player within the real estate letting sector, likely focused on a limited portfolio or a single property asset given the micro classification and lack of employees. Its key strength is ownership and control concentrated in the hands of a single director/majority shareholder, which may allow for agile decision-making. However, its weaknesses include negative net assets and significant current liabilities, which are red flags relative to typical competitors, who generally maintain stronger equity and liquidity positions. The absence of revenue or operational scale limits its ability to compete with larger, more diversified real estate firms or portfolios. The company’s reliance on external creditors or short-term financing may pose solvency risks if income streams are insufficient.