GRYPHON PROPERTY MANAGEMENT LIMITED

Executive Summary

Gryphon Property Management Limited shows signs of financial distress with persistent negative net assets and significant liquidity shortfalls, primarily driven by substantial long-term liabilities. Despite compliance with filing requirements and a stable fixed asset base, the company’s solvency and operational sustainability are at risk. Further due diligence on debt terms, cash flows, and business viability is recommended before considering investment.

GRYPHON PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13021228

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has persisted for multiple years, with net liabilities worsening from -£7,531 in 2023 to -£202 in 2024 (though this is an improvement, the company remains insolvent on a net asset basis). Current liabilities significantly exceed current assets, resulting in negative net current assets (-£13,506 in 2024). The level of creditors falling due after more than one year (£400,089) is substantial relative to total assets, indicating high leverage and potential solvency risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s shareholders’ funds remain negative, reflecting accumulated losses or liabilities exceeding assets, which is a critical solvency concern.
• Liquidity Deficit: Current assets (£987) are negligible compared to current liabilities (£400,089), resulting in a working capital deficiency that may impair the company’s ability to meet short-term obligations.
• High Long-Term Creditors: The company carries substantial long-term liabilities (~£400k), which may be linked to financing fixed assets, but this level of debt raises questions about debt servicing capacity and financial sustainability.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active with no overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Consistent Fixed Asset Base: Fixed assets remain stable at £413,393 over the years, suggesting the company has tangible assets underpinning its operations.
• Single Director and PSC Alignment: The sole director and 100% controlling shareholder is consistent, which may simplify governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£400k+), including repayment schedules and interest obligations.
• Review cash flow statements (not provided here) to assess operational cash flows and ability to service debt.
• Understand the business model and revenue generation, particularly how the company plans to improve liquidity and return to a positive net asset position.
• Clarify the reason for negative equity in prior years and any restructuring or capital injection plans.
• Confirm the valuation and liquidity of fixed assets—whether these can be leveraged or sold if required.
• Ensure no undisclosed contingent liabilities or regulatory issues given the financial strain.