CROSS COUNTRY PARTNERS AND SHAH LIMITED

Executive Summary

CROSS COUNTRY PARTNERS AND SHAH LIMITED operates as a niche player in the investment property letting sector, holding a modest portfolio with a leveraged financial structure. While its asset base shows some appreciation, the company’s negative equity and significant debt relative to assets highlight potential financial vulnerability in a rising interest rate environment. Its small scale and focused model provide operational simplicity but limit competitive agility compared to larger, better-capitalized real estate firms.

CROSS COUNTRY PARTNERS AND SHAH LIMITED - Analysis Report

Company Number: 12832147

Analysis Date: 2025-07-20 15:27 UTC

1. Industry Classification
   CROSS COUNTRY PARTNERS AND SHAH LIMITED operates primarily under SIC code 68209, categorized as "Other letting and operating of own or leased real estate." This sector typically involves companies that own, manage, and lease investment properties such as commercial, residential, or mixed-use real estate. Key characteristics of this sector include capital-intensive asset bases, reliance on rental income streams, sensitivity to property market cycles, and exposure to regulatory and taxation policies affecting property ownership and leasing.

2. Relative Performance
   This company is a private limited entity with investment properties valued at approximately £1.42 million as of the 2023 financial year end. Despite holding significant fixed assets (investment property), the company reports net liabilities of £100,155, indicating a negative shareholders’ equity position. Current assets are modest (£217,464) relative to substantial long-term liabilities (£1.72 million in bank loans and other creditors). The absence of employees suggests a lean operating structure, likely focused solely on property management rather than development or broader real estate services.

Compared to typical peers in the investment property sector, which often maintain positive net asset positions and leverage debt prudently against property valuations, this company's balance sheet reflects a leveraged position with negative equity. While negative net assets are not uncommon in early-stage or highly leveraged real estate entities, it highlights financial strain and potential risks regarding solvency and refinancing capacity. The company's turnover and profitability figures are not disclosed, so performance benchmarking against industry revenue or profit margins is limited.

3. Sector Trends Impact
   The UK real estate letting sector is influenced by several market dynamics: post-pandemic shifts in commercial property demand, rising interest rates increasing borrowing costs, inflation affecting maintenance and operational expenses, and evolving regulations such as changes in taxation on property income and capital gains. Additionally, regional property markets like Nottingham may experience variable demand drivers based on local economic conditions.

For a company like CROSS COUNTRY PARTNERS AND SHAH LIMITED, these trends imply both opportunities and risks. Rising interest rates could increase debt servicing costs on its £1.7 million liabilities, potentially exacerbating financial pressures. However, appreciation in investment property values (noted increase from £1.357m to £1.421m) can provide asset value support. The small scale and lack of employees limit operational flexibility but also reduce fixed overheads.

4. Competitive Positioning
   CROSS COUNTRY PARTNERS AND SHAH LIMITED appears to be a niche player within the investment property sector, focusing on property leasing and management without broader development or real estate services. Its financial structure—significant debt relative to assets and negative equity—is a weakness compared to larger, more established real estate firms that typically maintain stronger balance sheets and diversified income streams.

Strengths include a focused business model and asset base that can generate rental income, with limited operational complexity. Weaknesses are the company's leveraged position, negative shareholder funds, and limited scale, which restrict its ability to absorb market shocks or invest in growth. Compared to industry norms, where companies often maintain positive net assets and have more diversified revenue, CROSS COUNTRY PARTNERS AND SHAH LIMITED may face challenges in competing for new tenants, refinancing debt, or expanding its portfolio.