HOME AND PROPERTY SERVICES LTD

Executive Summary

Home and Property Services Ltd is a newly formed small private company operating in building project development. Although current filings are compliant and short-term liquidity appears sufficient, the company’s financial structure shows high leverage with significant director loans and very low equity, posing a medium risk to solvency and financial stability. Further investigation into related-party loans and long-term funding arrangements is advised to better assess ongoing viability.

HOME AND PROPERTY SERVICES LTD - Analysis Report

Company Number: 14633858

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: MEDIUM

Justification: The company is newly incorporated (2023) and has filed its first set of accounts on time without overdue filings, which is positive for regulatory compliance. However, the financial position shows very low net assets (£498) with significant long-term liabilities (£43,000 loans) and substantial loans to directors (£25,054 combined). This raises concerns about capital adequacy and solvency. Current assets exceed current liabilities, indicating short-term liquidity is adequate, but overall financial stability is fragile given the small equity base and reliance on director loans.

2. Key Concerns:

• High Leverage and Low Equity: The company carries £43,000 in long-term loans, almost entirely offsetting its total assets, leaving a very low net asset position (£498). This thin capital buffer increases insolvency risk if asset values decline or liabilities increase.
• Director Loans: Loans to directors totaling £25,054 (interest-free and repayable on demand) represent a significant portion of current assets. This could indicate reliance on related-party funding and potential liquidity risk if these loans are not repaid promptly.
• Limited Operational History and Financial Data: With less than one full year of operation and minimal fixed assets, the sustainability and operational stability of the business are uncertain. There is insufficient data to assess profitability or cash flow trends.

3. Positive Indicators:

• Regulatory Compliance: The company is active, all filings (accounts and confirmation statements) are up to date and not overdue, showing good governance and regulatory adherence.
• Positive Net Current Assets: Current assets (£51,642) exceed current liabilities (£9,356) by a substantial margin (£42,286), suggesting an ability to meet short-term obligations.
• Clear Ownership and Control: Directors and controlling shareholders are identified with transparent ownership split, which aids governance clarity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £43,000 long-term loan, including lender identity and repayment schedule.
• Assess the collectability and terms of the loans to directors (£25,054), including any plans for repayment or conversion to equity.
• Review cash flow projections and operational plans to evaluate sustainability beyond the initial period.
• Clarify the company’s revenue generation model and contract pipeline given the SIC code indicating development of building projects.
• Confirm there are no undisclosed contingent liabilities or potential regulatory risks given the company’s early stage.