CPFB PROPERTIES LTD

Executive Summary

CPFB Properties Ltd shows a solid asset base predominantly in investment properties but faces liquidity challenges due to a negative net working capital position and significant creditor balances. The company is compliant with filing obligations, yet the financial structure indicates moderate solvency risk requiring further analysis of cash flows and related party transactions. Overall, while the business appears operationally stable at this early stage, investors should monitor liquidity and financing arrangements closely.

CPFB PROPERTIES LTD - Analysis Report

Company Number: 15237471

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM
   The company demonstrates substantial fixed assets in investment properties but shows significant net current liabilities and a negative working capital position. While it is newly incorporated with no overdue filings, the liquidity risk arising from a large creditor balance and current liabilities exceeding current assets warrants caution.

2. Key Concerns:

• Negative net current assets of £401,362 indicate potential short-term liquidity pressure to meet obligations falling due within one year.
• Significant amounts owed to related parties and other creditors (£780,909 current plus £221,300 long-term loans) could suggest reliance on external funding rather than operational cash flow.
• Limited equity base (£99,831) relative to total assets and high gearing increases solvency risk if asset values decline or cash flow deteriorates.

3. Positive Indicators:

• Substantial investment property assets valued at £745,287 provide a strong asset base that could be leveraged or sold if needed.
• No overdue statutory filings indicates good compliance and governance practices.
• Directors have experience (two managing directors appointed) and related-party structure suggests aligned ownership and control.

4. Due Diligence Notes:

• Assess the nature and terms of the intercompany loan and other creditor balances, specifically repayment terms, interest, and security arrangements.
• Review cash flow forecasts and rent roll or income streams from investment properties to evaluate ongoing operational sustainability.
• Verify the valuation methodology for investment properties and check for any impairments or contingent liabilities.
• Investigate the extent of related party transactions and potential conflicts of interest or dependence.
• Confirm the absence of any director conduct issues or regulatory risks.