ELLIS PROPERTIES (BARSHAM) LIMITED

Executive Summary

ELLIS PROPERTIES (BARSHAM) LIMITED demonstrates modest growth in net assets but presents a concerning liquidity mismatch with current liabilities far exceeding current assets. While the company complies with statutory filing requirements and holds significant fixed assets, limited financial disclosures and a short operating history warrant cautious evaluation. Further due diligence on liabilities and cash flow is recommended to fully assess solvency and operational stability.

ELLIS PROPERTIES (BARSHAM) LIMITED - Analysis Report

Company Number: 14314490

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds growth, but current liabilities exceed current assets by a large margin, indicating potential liquidity stress. The micro-entity status limits detailed financial disclosures, restricting full risk assessment.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities (£513,982) far exceed current assets (£24,082) as of 2024, creating a substantial working capital deficit that could impair short-term obligations.
• Limited Financial Transparency: Being a micro-entity, the company benefits from reduced reporting requirements, providing minimal insight into cash flows, profitability, or debt structure.
• Recent Incorporation and Limited Operating History: Incorporated in August 2022, the company has a short track record, limiting historical performance evaluation and increasing uncertainty about operational stability.

3. Positive Indicators:

• Growth in Net Assets and Shareholders’ Funds: Net assets increased from £5,312 in 2023 to £19,575 in 2024, indicating some improvement in the equity base.
• Fixed Assets Stability: Fixed assets remain consistent at £510,550, suggesting stable capital investment or property holdings aligned with its real estate management activities.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, showing good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Verify the nature and terms of the substantial current liabilities to assess repayment risk and whether these are short-term debts or intercompany balances.
• Review cash flow statements (if available) or bank statements to understand liquidity management and operational cash generation.
• Investigate the operational model, revenue streams, and management experience given the short trading history and the real estate management industry focus.
• Confirm the identity and financial strength of shareholders or guarantors supporting the company to mitigate solvency risk.