Company Number: 14615383

Analysis Date: 2025-07-29 16:30 UTC

1. Risk Rating: HIGH

Justification: Kup Properties Limited is a recently incorporated micro-entity with minimal operating history. Its financial statements for the first period show a very low net asset base (£1,429), significant long-term liabilities (£138,715), and negative net current assets (-£52,713), indicating potential solvency and liquidity concerns. The company’s ability to meet short-term obligations appears constrained, raising risk for investors.

2. Key Concerns:

• Negative Net Working Capital: Current liabilities exceed current assets by £52,713, suggesting short-term liquidity pressures.
• High Long-Term Debt Relative to Equity: Creditors due after one year (£138,715) vastly outweigh shareholders’ funds, indicating high leverage and potential solvency risk.
• Limited Operating History and Scale: Incorporated in January 2023 with only one employee and no audit exemption, financial performance and operational sustainability remain unproven.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance diligence.
• Directors with Control and Stability: Both directors hold significant share and voting control with no adverse records reported, which may support stable management.
• Asset Base Consisting of Fixed Assets: The company holds fixed assets valued at £192,857, presumably real estate given the SIC code, which provides some tangible backing.

4. Due Diligence Notes:

• Nature and Terms of Long-Term Creditors: Clarify the source, repayment terms, interest rates, and covenants related to the £138,715 long-term liabilities.
• Cash Flow Statements and Projections: Obtain detailed cash flow data to assess liquidity management and operational cash generation prospects.
• Business Model and Rental Income: Confirm the revenue model related to property letting and verify occupancy rates, tenant stability, and contract terms.
• Directors’ Background Checks: Although no disqualifications noted, further review of directors’ financial and operational track records may provide additional comfort.
• Future Capital Raises or Guarantees: Enquire if shareholders or third parties have committed further capital or guarantees to support solvency.