CHERRYTREE PROPERTIES (DUNDEE) LIMITED

Executive Summary

Cherrytree Properties (Dundee) Limited, a micro-entity in real estate letting, demonstrates a high risk profile primarily due to severe liquidity constraints and minimal equity. While compliance with filing obligations and asset holdings provide some reassurance, the company's negative working capital and limited financial disclosures warrant thorough due diligence before any investment consideration.

CHERRYTREE PROPERTIES (DUNDEE) LIMITED - Analysis Report

Company Number: SC683115

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by a large negative net current asset position (£-177,122) and current liabilities vastly exceeding current assets. Its net assets and shareholders' funds are minimal (£4,318), indicating very limited equity buffer to absorb any losses or liabilities.

2. Key Concerns:

• Negative Working Capital: Current liabilities of £177,660 dwarf current assets of £538, suggesting an inability to meet short-term obligations from liquid resources.
• Minimal Equity Base: Shareholders funds of only £4,318 provide a very thin capital cushion, which raises concerns about financial stability and resilience.
• Lack of Audit and Limited Financial Disclosure: Being a micro-entity exempt from audit reduces external scrutiny. Limited financial history since incorporation in 2020 restricts trend analysis and risk assessment.

3. Positive Indicators:

• Active Status with Up-to-Date Filings: The company is active with no overdue filings, indicating compliance with Companies House requirements.
• Fixed Asset Base: The company holds fixed assets valued at £182,340, which could be a tangible resource potentially supporting operational activities or collateral.
• Stable Directorship: Two directors appointed at incorporation remain current, implying continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (creditors) to assess urgency and potential for renegotiation or refinancing.
• Review cash flow statements or bank statements if available to understand liquidity management and operational cash generation.
• Clarify the composition and valuation basis of fixed assets to determine realizable value and potential for asset-based lending or sale.
• Examine any contingent liabilities or off-balance sheet exposures that may increase financial risk.
• Assess the business model and revenue generation capacity given the lack of profit or reserves and minimal net assets.