GATEWAY PROPERTY DEVELOPMENT UK LTD

Executive Summary

Gateway Property Development UK Ltd shows significant financial distress characterized by substantial working capital deficits sustained over multiple years and negative shareholders' equity. Although the company maintains compliance with filing deadlines and holds a valuable investment property, its heavy reliance on director loans and lack of liquidity raise serious solvency concerns. Further scrutiny into the funding structure and operational viability is strongly recommended before considering investment.

GATEWAY PROPERTY DEVELOPMENT UK LTD - Analysis Report

Company Number: 13558439

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH

This rating is due to the company’s persistently negative net current assets and shareholders’ funds, indicating significant solvency and liquidity concerns. The large director loans classified as current liabilities greatly exceed current assets, creating a substantial working capital deficit.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities (~£660k) overshadow current assets (~£2k), resulting in negative net current assets of approximately £658k in 2024, with no improvement over prior years.
• Negative Net Assets and Shareholders’ Funds: Net liabilities increased from -£1,172 in 2023 to -£5,978 in 2024, reflecting ongoing losses or capital erosion.
• Concentration of Control and Funding: The sole director, Mr. Chi Ming Yan, who also provides substantial loans to the company, holds 75-100% of shares. Dependence on director loans for funding may raise concerns about sustainability and governance.

3. Positive Indicators:

• Active Status and Recent Filings: The company is active with no overdue accounts or confirmation statements, indicating compliance with filing requirements.
• Stable Investment Property Valuation: The investment property asset remains valued at £651,645 with no impairment, which is a significant fixed asset.
• Small Scale Operation: The company employs only one person and qualifies as a small entity under accounting standards, simplifying financial and regulatory complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans (interest rates, repayment schedules, security) to assess funding sustainability and risk of default.
• Clarify the company’s business model and revenue generation capability, as turnover and profit/loss details are not provided.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Confirm whether the investment property is generating income or is held for capital appreciation.
• Assess the director’s track record and capability to address the financial deficits and improve company performance.