CH RICHARDS PROPERTIES LIMITED

Executive Summary

CH Richards Properties Limited exhibits a moderately risky financial profile, characterized by short-term liquidity challenges and reliance on investment property assets for solvency. The recent improvement in net assets and up-to-date regulatory filings are positive signs, but close scrutiny of liabilities and cash flow is warranted to assess ongoing financial stability. Further due diligence on debt structure and asset valuation is recommended to inform investment decisions.

CH RICHARDS PROPERTIES LIMITED - Analysis Report

Company Number: 13225420

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: MEDIUM
   The company demonstrates some solvency and operational risks primarily due to its negative net current assets and high current liabilities relative to current assets. However, a significant increase in investment property value and positive net assets in the latest year suggest some recovery or asset appreciation mitigating immediate insolvency concerns.

2. Key Concerns:

• Liquidity Risk: The company has net current liabilities of £107,485 as of 30 June 2024, indicating a short-term liquidity mismatch that could impair meeting near-term obligations.
• High Current Liabilities: Current liabilities (£191,796) substantially exceed current assets (£11,204), raising concerns about cash flow pressures and the ability to fund ongoing operations without additional financing.
• Reliance on Investment Property Valuation: The marked increase in fixed assets (investment properties) from £191,835 to £325,000 is largely due to revaluation and additions. This asset appreciation is not liquid and may not be readily convertible to cash to meet liabilities if needed.

3. Positive Indicators:

• Improved Net Assets: The company’s net assets improved to £20,833 from a negative £2,225 the previous year, indicating an improvement in overall financial position.
• No Overdue Filings: The company is current on both accounts and confirmation statement filings, suggesting adequate regulatory compliance and governance.
• Asset Growth: Addition and revaluation of investment properties suggest active asset management and potential for future income or capital gains.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly whether there are any short-term debts requiring refinancing or repayment imminently.
• Assess cash flow projections and the company’s ability to generate operating cash or secure additional funding to cover net current liabilities.
• Verify the valuation methodology and market assumptions used for investment property revaluation to ascertain the reliability of fixed asset values.
• Review the company’s revenue streams and profitability trends, as turnover and profit data are not provided, to better understand operational sustainability.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in current accounts.