F H PROPERTY INVESTMENTS LIMITED

Executive Summary

F H Property Investments Limited, a recently incorporated property investment company, shows a substantial liquidity mismatch with current liabilities dwarfing current assets, resulting in a high risk of short-term solvency issues. While the company holds significant fixed assets in property and investments, the minimal equity and heavy short-term creditor reliance present material concerns. Further examination of creditor terms and asset valuations is essential to fully understand the financial stability and operational viability.

F H PROPERTY INVESTMENTS LIMITED - Analysis Report

Company Number: 15199378

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH
   The company demonstrates a critical liquidity imbalance with current liabilities vastly exceeding current assets, resulting in significant net current liabilities. Despite holding fixed assets primarily in property investments, the working capital deficit and minimal equity base suggest potential solvency challenges in meeting short-term obligations.

2. Key Concerns:

• Severe net current liabilities of approximately £6.27 million against current assets of only £8,288, indicating acute liquidity risk.
• Reliance on substantial short-term creditors (£6.27 million), predominantly "other creditors," which may indicate significant unpaid obligations or intercompany funding that could be called in.
• Minimal shareholder funds (£2,528) relative to asset size, reflecting a fragile equity cushion and potential vulnerability to asset value fluctuations or creditor demands.

3. Positive Indicators:

• Ownership of investment property valued at £2.45 million and related investments of £3.82 million, providing a tangible asset base.
• Recent formation (incorporated October 2023) with up-to-date filings and no overdue accounts or confirmation statements, evidencing compliance with statutory requirements.
• Experienced directors and a company secretary appointed, suggesting governance structures are in place.

4. Due Diligence Notes:

• Investigate the nature and terms of the £6.27 million current liabilities, particularly the "other creditors" component, to assess repayment schedules and creditor relationships.
• Review cash flow forecasts and any financing arrangements supporting liquidity to understand how short-term obligations will be met.
• Verify the valuation methodology and marketability of the investment property and shares in group undertakings to evaluate asset realizability under distress scenarios.
• Clarify the company's business plan and source of funding given the large liabilities and minimal equity, including any contingent liabilities or guarantees.