CL LEUNG PROPERTIES LIMITED

Executive Summary

CL LEUNG PROPERTIES LIMITED shows a high risk profile primarily due to negative net assets and a large liability base that exceeds assets, indicating possible solvency and liquidity challenges. While the company holds significant fixed assets and complies with filing requirements, the absence of employees and low current assets raise concerns about operational sustainability. Further investigation into creditor arrangements and cash flow is essential for a more comprehensive risk assessment.

CL LEUNG PROPERTIES LIMITED - Analysis Report

Company Number: 13952857

Analysis Date: 2025-07-20 14:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to net liabilities and substantial long-term creditors exceeding total assets. Net assets are negative (£-4,316 in 2024), indicating insolvency on a balance sheet basis.

2. Key Concerns:

• Negative net assets and shareholders’ funds suggest the company’s liabilities exceed its assets, raising concerns about its ability to meet obligations.
• Current liabilities nearing £1,015,664 vastly outweigh modest current assets (£24,376), indicating potential liquidity problems.
• The company has no employees and minimal current assets, relying heavily on fixed assets, which may not be readily liquidated to cover debts.

3. Positive Indicators:

• The fixed assets value is stable at £1,048,050, indicating ownership of significant real estate assets.
• The company is compliant with filing deadlines for accounts and confirmation statements, reflecting regulatory adherence to this extent.
• Ownership and control are consolidated under a single director and PSC, which may simplify decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (~£1 million), including repayment schedules and any secured lending against fixed assets.
• Review cash flow statements or bank statements (not provided) to determine the company’s ability to service short-term liabilities.
• Assess the valuation and marketability of fixed assets to understand realistic recovery value in distress scenarios.
• Confirm whether the company is generating any rental income or other operational revenue to support ongoing expenses.
• Examine director’s plans or intentions regarding addressing the negative net asset position.