CLARE'S PROPERTY LTD

Executive Summary

Clare's Property Ltd is a newly incorporated micro-entity with significant liquidity challenges and minimal net assets, resulting in a high-risk profile from an investment perspective. Although compliant with statutory filings and supported by a fixed asset base, the company’s short operating history and large current liabilities warrant thorough due diligence on asset quality, liability terms, and cash flow viability before considering investment exposure.

CLARE'S PROPERTY LTD - Analysis Report

Company Number: 15031732

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: HIGH
   The company exhibits a high-risk profile primarily due to significant net current liabilities exceeding current assets by approximately £240,000, resulting in very weak liquidity and minimal net assets (£161). This raises concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£270,329) substantially exceed current assets (£30,250), indicating potential cash flow difficulties and risk of default on short-term debts.
• Minimal Net Assets and Equity: Net assets are barely positive (£161), suggesting very limited financial buffer or reserves to absorb shocks or operational setbacks.
• Early Stage with Limited Operating History: Incorporated in July 2023, the company has a short trading history and limited financial data, increasing uncertainty about its operational sustainability and future performance.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its annual accounts and confirmation statement filings, indicating sound regulatory compliance and governance.
• Sole Control and Directorship: The sole director and 100% shareholder, Clare Jane Barrett-Bee, appears to have full control, which may facilitate swift decision-making and strategic adjustments.
• Fixed Asset Base: The company holds fixed assets valued at £241,140, which could potentially be leveraged or sold to improve liquidity if necessary.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition, market value, and liquidity of fixed assets to assess their usability as collateral or for sale.
• Source and Terms of Current Liabilities: Clarify the nature of the large current liabilities (e.g., loans, trade creditors), their maturity profile, and any related party transactions.
• Business Model and Revenue Streams: Understand how the company generates income, its client base, and prospects for cash flow improvement given the SIC code related to real estate letting and operation.
• Director Background and Financial Support: Review the financial standing and history of the sole director for insights into potential capital injections or guarantees.
• Cash Flow Projections: Seek management forecasts and budgets to assess the company’s ability to navigate its liquidity challenges and achieve operational stability.