CALVERT PROPERTY INVESTMENT LTD

Executive Summary

Calvert Property Investment Ltd is a newly incorporated property investment company presenting early-stage financial distress indicators, including negative net assets and low liquidity. While it holds significant investment property assets secured by a bank loan, the absence of turnover and negative working capital raise solvency and operational sustainability concerns. Timely filings and engaged directors are positive governance signals, but further due diligence on financing arrangements and business viability is essential.

CALVERT PROPERTY INVESTMENT LTD - Analysis Report

Company Number: 15024359

Analysis Date: 2025-07-29 13:16 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-12,160) and net current liabilities (£-68,379) at its first year-end, indicating solvency concerns. Its cash balance (£3,795) is minimal relative to short-term creditors (£72,174), raising liquidity risk. The company is newly incorporated with limited operational history and negative retained earnings (£-18,130), suggesting financial instability.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders’ funds imply the company is technically insolvent on a balance sheet basis, which is a red flag for creditors and investors.
• Liquidity Concerns: Low cash reserves relative to current liabilities suggest potential short-term cash flow difficulties, especially as the company has no reported turnover or employees.
• Operational Stability: The company is in its first financial period with no turnover disclosed and no employees, raising questions about its ability to generate sustainable income or cash flow to service debts.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £165,000, which is a significant fixed asset and is secured against a bank loan, potentially providing collateral support.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements and good governance in reporting.
• Directors with Local Presence: Both directors and significant shareholders reside at the registered address, potentially indicating strong personal involvement in management.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the secured bank loan (£112,500) and evaluate the risk of default or covenant breaches.
• Investigate the company’s business plan, revenue model, and pipeline for generating rental income or other cash flows from the investment property.
• Assess the directors’ plans or sources of funds to improve liquidity and solvency, including any planned capital injections or refinancing.
• Confirm whether the investment property valuation is supported by an independent professional valuation or solely director’s estimate.
• Examine any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.