LARSA PROPERTIES LIMITED

Executive Summary

LARSA PROPERTIES LIMITED exhibits significant solvency and liquidity risks, evidenced by negative net assets and a lack of current assets to meet liabilities. While compliance filings are current and directors appear engaged, the financial position indicates potential distress. Further investigation into liabilities, asset quality, and cash flow is essential before investment consideration.

LARSA PROPERTIES LIMITED - Analysis Report

Company Number: SC781450

Analysis Date: 2025-07-19 12:45 UTC

1. Risk Rating: HIGH
   Justification: The company shows a significant negative net asset position (£-233,000) despite reporting fixed assets of £187,000. The balance sheet indicates substantial liabilities exceeding total assets, with no current assets to cover short-term obligations, suggesting solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are negative £233,000, indicating the company is insolvent on a balance sheet basis.
• Lack of Current Assets: Zero current assets versus £140,000 current liabilities, raising immediate liquidity risk.
• Large Liabilities: The presence of creditors and provisions amounting to £140,000 both within and beyond one year signals substantial debt burden relative to asset base.

3. Positive Indicators:

• Directors Are Active and Compliant: No overdue filings and recent accounts and confirmation statement submitted on time.
• Established Directors with Local Presence: Both directors reside at the company address, potentially facilitating operational oversight.
• Micro Entity Status: Limited filing requirements reduce compliance complexity during early stage.

4. Due Diligence Notes:

• Clarify Nature and Terms of Liabilities: Investigate the composition of the £140,000 current and long-term creditors and provisions to assess repayment schedules and conditions.
• Verify Asset Valuation: Confirm the fixed assets valuation of £187,000 and whether these assets are liquid or encumbered.
• Review Cash Flow and Funding Sources: Determine how the company is managing cash flow given no current assets and negative working capital.
• Explore Business Model Viability: Given the early stage (incorporated Sept 2023), review business plan, contracts, and revenue generation prospects.
• Confirm Director Background Checks: Validate no disqualifications or adverse records for the appointed directors.