KENNETH ROBIN PROPERTIES LTD

Executive Summary

Kenneth Robin Properties Ltd operates in real estate with a substantial fixed asset base but exhibits significant liquidity and solvency risks due to negative working capital and high leverage. While statutory filings are current and governance appears sound, the company’s thin equity buffer and large creditor balances warrant further investigation into cash flow adequacy and debt servicing capacity. Investors should exercise caution and seek additional financial details before committing capital.

KENNETH ROBIN PROPERTIES LTD - Analysis Report

Company Number: 13137390

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and a high level of long-term creditors relative to its total assets, indicating potential solvency and liquidity risks. Net assets are positive but very low compared to liabilities, suggesting weak equity buffer.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £558k as of 2024, implying potential short-term liquidity difficulties to meet obligations as they fall due.
• High Long-Term Debt: Creditors falling due after more than one year stand at £757k, which is substantial relative to total assets, indicating leverage risk and dependency on future cash flows or refinancing.
• Small Shareholders’ Funds: Equity is only £15k, up slightly from a negative position in the prior year, but still very thin, which may limit the company’s ability to absorb losses or raise additional capital.

3. Positive Indicators:

• Asset Base Stability: Fixed assets are substantial (£1.33m), reflecting investment in real estate consistent with the company’s SIC codes. This could provide collateral value in case of financial distress.
• Timely Filings: There are no overdue accounts or confirmation statements, indicating compliance with statutory filing requirements and governance discipline.
• Consistent Directors and PSC Transparency: The company has stable director appointments since incorporation, and Persons with Significant Control are properly registered, supporting transparency.

4. Due Diligence Notes:

• Review the nature and terms of creditors, especially the £757k long-term liabilities, to assess repayment schedules, interest obligations, and potential refinancing risks.
• Investigate cash flow statements or management accounts (not provided) to evaluate operational liquidity beyond balance sheet snapshots.
• Understand the business model and revenue generation capacity given the micro-entity reporting exemption and absence of profit and loss accounts filed to gauge sustainability.
• Confirm the valuation methodology and marketability of fixed assets to assess realizable value in stress scenarios.
• Assess any contingent liabilities or off-balance sheet obligations that may impact solvency.