FRESHFIELD PROPERTY LTD

Executive Summary

Freshfield Property Ltd shows a stable equity position supported by investment property assets and reported profitability. However, persistent negative working capital and limited cash reserves present a moderate liquidity risk. The company appears compliant with regulatory requirements but warrants further investigation into its short-term liabilities and operational cash flows to fully assess financial sustainability.

FRESHFIELD PROPERTY LTD - Analysis Report

Company Number: 13476699

Analysis Date: 2025-07-29 20:11 UTC

1. Risk Rating: MEDIUM

Justification: Freshfield Property Ltd is an active private limited company engaged in real estate letting. While the company shows positive net assets and increasing shareholders’ funds over the last year, it consistently reports significant net current liabilities and a negative working capital position. The company holds investment property valued at £204,387 but current liabilities exceed current assets by over £170,000 as of the latest accounts. Cash reserves have modestly increased but remain low relative to short-term obligations, indicating potential liquidity pressures.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (~£217k) exceed current assets (~£45k cash only), resulting in a net current liability of approximately £171k, which raises concerns about short-term liquidity and the ability to meet immediate obligations.
• Reliance on Investment Property: The balance sheet is heavily weighted toward the investment property (£204k), which may not be liquid or readily convertible to cash without loss, limiting operational cash flow flexibility.
• Limited Operational Activity: The company has no employees and minimal turnover information is available. Directors’ occupations outside the business (dentist, dental hygienist) suggest this may be a passive investment vehicle rather than an active trading enterprise, which could impact sustainability and growth prospects.

3. Positive Indicators:

• Positive Shareholders’ Funds: The company’s equity has increased from £23,777 in 2023 to £32,814 in 2024, reflecting retained earnings and profitability (£15,037 profit for 2024).
• No Overdue Filings: The company is compliant with statutory filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance and governance.
• Investment Property Valuation Stable: The investment property value remained unchanged at £204,387 from 2023 to 2024, suggesting stable asset valuation without impairments.

4. Due Diligence Notes:

• Verify the terms and maturity profile of current liabilities to assess refinancing or repayment risk.
• Investigate cash flow statements or bank statements (if available) to confirm liquidity management and operational cash generation.
• Confirm the nature and condition of the investment property, including marketability and any encumbrances or liens.
• Clarify the company’s business model and income sources, given the lack of employees and directors’ external occupations.
• Review any related party transactions or director loans that may impact financial stability.