ESA PROPERTY ACQUISITIONS LIMITED

Executive Summary

ESA PROPERTY ACQUISITIONS LIMITED is a recently formed micro entity with minimal net assets and significant long-term liabilities, presenting a high solvency risk. While regulatory compliance is satisfactory and ownership is concentrated for efficient governance, the company's financial position and lack of operational history warrant thorough due diligence before investment. Close attention should be paid to creditor terms, cash flow plans, and management background to assess viability.

ESA PROPERTY ACQUISITIONS LIMITED - Analysis Report

Company Number: 15054665

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   Justification: The company shows a net asset position of only £100 with significant long-term liabilities (£11,666) closely matching current assets plus prepayments, indicating limited financial cushion. The extremely low equity base and high creditor amounts relative to assets raise immediate solvency concerns for a property acquisition business.

2. Key Concerns:

• Negative working capital dynamics: Current liabilities are very close to current assets, leaving minimal liquidity to cover short-term obligations.
• Very low net asset value (£100) relative to liabilities suggests fragile financial stability and potential insolvency risk if creditors demand repayment.
• Company is newly incorporated (2023) with limited operating history and no employees, increasing uncertainty about operational sustainability and cash flow generation.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance so far.
• Full ownership and control by a single director/shareholder (Mr Rory Ellacott) may allow swift decision-making and streamlined governance.
• The company operates in a potentially lucrative real estate niche (buying, selling, and letting own property) with an active web presence indicating marketing efforts.

4. Due Diligence Notes:

• Investigate the nature and terms of the £11,666 creditors due after more than one year to assess repayment risk and covenant conditions.
• Clarify the operational model and cash flow projections given the minimal current assets and no employees, including any planned capital injections or external funding.
• Confirm absence of director disqualifications or legal actions against Mr Rory Ellacott to validate management credibility.
• Obtain detailed profit & loss data and forecasts since these micro entity accounts do not include P&L details, limiting insight into profitability and cash generation.