LINARA PROPERTIES LTD

Executive Summary

Linara Properties Ltd, a micro private limited company operating in real estate letting, shows stable fixed assets but persistent liquidity challenges due to negative net current assets and significant long-term liabilities. While regulatory compliance and governance appear sound, the modest equity base and cash flow risks warrant careful scrutiny of creditor terms and operational cash generation. Overall, the company presents a moderate risk profile requiring focused due diligence on solvency and liquidity metrics.

LINARA PROPERTIES LTD - Analysis Report

Company Number: 13909862

Analysis Date: 2025-07-29 19:02 UTC

1. Risk Rating: MEDIUM
   The company shows positive net asset growth but persistent negative net current assets indicate liquidity constraints. The micro-entity status limits detailed financial disclosure, contributing to moderate uncertainty.

2. Key Concerns:

• Negative net current assets (~£47k deficit) suggest potential short-term liquidity issues to meet current liabilities of £50k+.
• Substantial long-term liabilities (£161k) relative to net assets (£6.7k) indicate high gearing and potential solvency pressure if asset values decline.
• Limited equity base (£2 share capital and small retained earnings) restricts financial flexibility and buffers against operational or market shocks.

3. Positive Indicators:

• Consistent fixed asset base (£215k) reflects stable investment in property assets aligned with core real estate letting activities.
• The company is compliant with filing deadlines for accounts and confirmation statements, indicating proper regulatory adherence.
• Directors have been in place since incorporation with no public disqualifications, suggesting stable governance.

4. Due Diligence Notes:

• Investigate nature and terms of the £161k long-term creditors to assess refinancing risk and covenant requirements.
• Review underlying cash flow statements or management accounts to understand liquidity management and operational cash generation.
• Confirm valuation and condition of fixed assets to verify asset security backing liabilities.
• Assess future rental income streams and occupancy rates to evaluate operational sustainability.
• Verify no undisclosed contingent liabilities or related party transactions impacting financial position.