EDENDALE PROPERTIES LTD

Executive Summary

Edendale Properties Ltd, a micro-entity in the real estate sector, presents a high-risk profile primarily due to its leveraged position with substantial long-term creditors nearly equaling fixed assets and minimal net equity. While regulatory compliance is current and fixed assets provide some value, the absence of employees and limited operational history raise questions on sustainability and liquidity. Further investigation into liabilities, asset quality, and cash flow is advisable before considering investment.

EDENDALE PROPERTIES LTD - Analysis Report

Company Number: NI667043

Analysis Date: 2025-07-29 16:03 UTC

1. Risk Rating: HIGH
   The company shows a significant imbalance in its financial structure, with current liabilities far exceeding current assets and an overall net asset position that is tenuous given the large long-term creditors. This raises solvency and liquidity concerns.

2. Key Concerns:

• Solvency Risk: The company has fixed assets valued at £387,695 but is offset by long-term creditors of £393,850, resulting in minimal net assets (£5,589), indicating potential over-leverage.
• Liquidity Concerns: Current assets are £13,055, but current liabilities are £1,311 (not large in itself), yet the presence of substantial long-term creditors suggests cash flow constraints or reliance on external funding.
• Operational Stability: No employees are reported, and the company operates in the property buying and selling sector without apparent trading history prior to the latest year, suggesting a nascent or inactive operational state.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• Asset Base: Ownership of significant fixed assets valued at nearly £388k provides collateral value and potential for revenue generation or liquidation value.
• Shareholder Control: Clear ownership and control structure with a director actively involved since incorporation, which may allow for focused management decisions.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£393,850) to understand liabilities and repayment obligations.
• Assess cash flow projections and any available management accounts to determine liquidity position beyond the balance sheet snapshot.
• Review the fixed asset composition and valuation to confirm realizable value and underlying business activity related to these assets.
• Explore the business model and any contracts or agreements to assess operational viability given no reported employees or revenue data.
• Confirm that there are no director disqualifications or adverse records for the named director and significant controller.