ELEMENT PROPERTY SOURCING LTD

Executive Summary

Element Property Sourcing Ltd is a newly incorporated private company with negative net current assets and shareholders’ funds in its first reported year, indicating significant solvency and liquidity risks. While it maintains regulatory compliance and has a transparent ownership structure, its lack of operational data and financial deficits warrant close scrutiny of its funding and business viability. Further due diligence on cash flow, business plans, and director conduct is recommended before considering investment.

ELEMENT PROPERTY SOURCING LTD - Analysis Report

Company Number: 14914902

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: HIGH
   Element Property Sourcing Ltd exhibits a high-risk profile primarily due to its negative net current assets and shareholders’ funds within its first financial year, indicating immediate solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets (£-1,203): The company’s current liabilities exceed current assets, suggesting it may struggle to meet short-term obligations without additional funding.
• Negative Shareholders’ Funds (£-1,203): Indicates that liabilities outweigh assets, raising concerns about the company’s capital adequacy and financial sustainability.
• No Employees or Revenue Data: The accounts show zero employees and no indication of operating revenues or profit, which questions operational stability and the business model’s viability at this early stage.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with Companies House filing deadlines for both accounts and confirmation statements, reflecting good regulatory discipline.
• Clear Ownership and Control Structure: Two directors each control 25-50% of shares and voting rights, with documented rights to appoint/remove directors, providing transparency in governance.
• Micro-Entity Filing: The company has correctly utilized micro-entity accounting provisions, which is appropriate for its size and simplifies compliance.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Sources: Investigate whether the directors have injected sufficient capital or secured financing to address the working capital deficit and support operations.
• Review Business Model and Contracts: Assess evidence of ongoing or future revenue streams to determine operational sustainability beyond the first year.
• Director Background Checks: Confirm there are no adverse records or disqualifications for the current directors to ensure sound governance.
• Future Financial Projections: Obtain management forecasts or plans to understand how the company intends to improve its financial position and achieve profitability.