Company Number: 12443131

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

1. Risk Rating: HIGH
   C.I.L. Property Limited exhibits significant solvency concerns indicated by persistent negative net assets and shareholders’ funds over multiple years. The company’s current liabilities substantially exceed its current assets, resulting in large negative net current assets, raising serious liquidity issues.

2. Key Concerns:

• Persistent negative net assets: The company’s net assets are negative (£-16,826 as of 29 Feb 2024), signaling that liabilities exceed assets and the company is technically insolvent on a balance sheet basis.
• Severe working capital deficiency: Net current assets are deeply negative (£-211,829), suggesting the company may struggle to meet short-term obligations without additional funding.
• High long-term debt: Bank loans exceeding £232k with minimal cash reserves (~£1,078) imply a heavy debt burden relative to company size and asset base, intensifying refinancing and liquidity risks.

3. Positive Indicators:

• Substantial investment property asset: The company holds an investment property valued at £425,859 at fair value, representing the bulk of its fixed assets and a potential source of value recovery or income.
• Compliance with filing requirements: No overdue accounts or confirmation statements were noted, indicating regulatory compliance and governance discipline in statutory filings.
• Ownership and control: A single director and majority shareholder (Ms. Olivia Tarn Harper) provides clear control and accountability, potentially facilitating swift decision-making.

4. Due Diligence Notes:

• Verify the valuation and marketability of the investment property asset to assess realistic recoverable value and potential for generating cash flows or collateral for refinancing.
• Investigate the terms, covenants, and repayment schedule of the bank loans and other creditors to evaluate liquidity risks and potential for default or restructuring.
• Review profit and loss account details (not filed publicly) to understand operating performance, cash flow generation, and whether losses are ongoing or project-related.
• Assess the director’s plans to address the negative equity position and liquidity deficits, including any capital injection, asset sales, or restructuring efforts.
• Confirm the absence of any director disqualifications or governance issues beyond what has been disclosed.