FATEMAH PROPERTIES LIMITED

Executive Summary

FATEMAH PROPERTIES LIMITED is a micro-entity operating in a niche property-related service area with a significant fixed asset but negative equity and high current liabilities. Its financial position reflects challenges typical of small property holding companies facing rising financing costs and market uncertainties. Without operational scale or diversified income, the company’s competitive position is limited, highlighting the need for improved financial stability to navigate sector pressures.

FATEMAH PROPERTIES LIMITED - Analysis Report

Company Number: 12773121

Analysis Date: 2025-07-20 18:36 UTC

1. Industry Classification
   FATEMAH PROPERTIES LIMITED is classified under SIC code 96090, which corresponds to "Other service activities not elsewhere classified." This category is broad and typically includes niche or specialized service providers that do not fall into more common industry classifications. The company’s primary activity appears to be property-related, given its name, but it does not fall under standard real estate SIC codes (e.g., 68 for real estate activities), which may suggest a specialized or ancillary service within the property sector or a non-traditional business model. The micro-entity status and absence of employees indicate a very small-scale operation, likely focused on holding or managing a specific asset rather than active property development or management.

2. Relative Performance
   As a micro-entity, FATEMAH PROPERTIES LIMITED’s financials show fixed assets of approximately £1,018,237 consistently over the past four years, indicating ownership of a significant long-term asset, probably property. However, current liabilities exceed current assets substantially, resulting in negative net current assets around £-297,540 in 2024. More critically, the company reports net liabilities of £-115,475 with negative shareholders’ funds, indicating a deficit position on equity. This contrasts with typical property holding or investment companies, which often maintain positive net assets reflecting property value exceeding liabilities. The absence of employees and minimal current assets (cash or receivables) point to limited operational activity, which is common for holding companies but may raise concerns about liquidity and financing structure. Compared to industry norms, a micro-entity property holding company usually aims to maintain positive equity and manageable current liabilities to support asset financing and potential rental income streams.

3. Sector Trends Impact
   The property sector in the UK has experienced volatility influenced by broader economic conditions such as interest rate fluctuations, inflationary pressures, and post-pandemic recovery in commercial and residential markets. Rising interest rates have increased financing costs, which can strain companies with high debt levels, particularly those with negative equity like FATEMAH PROPERTIES LIMITED. Additionally, tightening credit conditions and regulatory scrutiny on property valuations impact the sector. For micro-entities without diversified income streams, reliance on property asset appreciation or rental income can be risky. The company's financials suggest it may be exposed to these market dynamics, especially if current liabilities include loans or mortgages secured against the fixed asset. However, as a small-scale player, it may be insulated from broader market swings if its asset is held for long-term purposes without immediate refinancing needs.

4. Competitive Positioning
   FATEMAH PROPERTIES LIMITED operates as a niche player within the property-related service domain, likely focused on asset holding rather than active property development or management. Its strength lies in ownership of a significant fixed asset, but weaknesses include negative net assets and high current liabilities, which undermine financial stability and flexibility. Unlike larger or medium-sized property companies that leverage operational scale, rental income, and diversified portfolios, this company’s micro status and financial position limit its competitiveness. It lacks employees and appears to have minimal operational activity, which may reduce overhead but also restrict growth potential. Compared to sector peers, it is vulnerable to liquidity risk and financing constraints. To improve its competitive stance, addressing the equity deficit and managing liabilities prudently would be essential.