CR PROPERTIES SCOT LTD

Executive Summary

CR PROPERTIES SCOT LTD is a newly incorporated micro-entity engaged in real estate letting with modest net assets and significant long-term liabilities. While compliance with filing requirements is satisfactory, the company’s financial structure and minimal current operational scale suggest medium risk, warranting close monitoring of debt obligations and cash flow generation capability. Further due diligence on the nature of liabilities and business operations is recommended to assess sustainability.

CR PROPERTIES SCOT LTD - Analysis Report

Company Number: SC761016

Analysis Date: 2025-07-20 18:58 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base relative to its fixed assets and has long-term liabilities nearly equal to its fixed assets. While it is a micro-entity with minimal operational scale and no employees, the balance sheet structure suggests potential leverage and limited liquidity buffers. The company's recent incorporation and limited financial history constrain a thorough risk assessment.

2. Key Concerns:

• High Long-Term Liabilities: Creditors due after more than one year (£177,894) almost match fixed assets (£177,836), indicating significant reliance on debt financing with limited equity cushion.
• Low Net Assets and Equity: Shareholders' funds stand at only £4,201, which may not be sufficient to absorb operational shocks or asset impairments.
• Minimal Current Assets and Operational Scale: Current assets are very low (£6,084) relative to fixed assets and liabilities, coupled with zero employees, implying limited operational activity and potential liquidity constraints.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, showing compliance with statutory requirements.
• Clear Ownership and Control: Two directors hold significant control with clear voting rights and directorship appointments, which may facilitate decisive governance.
• Micro Entity Reporting: The company benefits from simplified reporting requirements, consistent with its size, reducing administrative burdens.

4. Due Diligence Notes:

• Review Nature of Long-Term Liabilities: Investigate the terms, interest obligations, and repayment schedules of the creditors due after more than one year.
• Assess Business Model and Revenue Streams: Clarify how the company generates income and plans to service debt given its minimal current assets and lack of employees.
• Examine Directors’ Backgrounds and Related Party Transactions: Confirm the directors’ experience in property management and any related party loans or guarantees that may impact financial stability.
• Monitor Future Financial Statements: Given recent incorporation, track subsequent filings for evidence of operational progress, revenue generation, and cash flow adequacy.