MACC CARE PROPERTIES (AUSTIN ROSE) LIMITED

Executive Summary

Macc Care Properties (Austin Rose) Limited maintains a strong net asset base primarily due to its investment property holdings, and it complies with filing and audit requirements. However, persistent negative net current assets and low turnover relative to asset size suggest potential liquidity and operational cash flow risks. Further due diligence on cash flow sufficiency, related party dealings, and contingent liabilities is recommended to fully assess financial stability.

MACC CARE PROPERTIES (AUSTIN ROSE) LIMITED - Analysis Report

Company Number: 12471999

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: MEDIUM
   The company shows substantial fixed assets and positive net assets, indicating a solid capital base. However, persistent negative net current assets (working capital deficits) raise concerns about short-term liquidity and operational cash flow sufficiency.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities of over £5 million, indicating current liabilities exceed current assets. This could signal potential liquidity pressures in meeting short-term obligations.
• Low Turnover Relative to Asset Base: Turnover is reported at £530,000, which is very small compared to the significant investment property holdings (~£15 million). This low revenue relative to asset size may question operational cash generation capacity.
• Concentration of Control: The ownership and control is tightly held by related entities (Macc Care Aad Holdco Limited, Macc Care Group Holding Limited, and Macc Care Group Limited) with 75-100% shareholding and voting rights, which could pose governance risks.

3. Positive Indicators:

• Strong Net Asset Position: Net assets stand at around £7.48 million, showing the company is solvent on a balance sheet basis.
• Regular and Up-to-Date Filings: Accounts and confirmation statements are filed on time, with no overdue filings, indicating compliance with Companies House requirements.
• Independent Auditor Report: The audit was conducted by a reputable firm with a clean opinion, including confirmation of going concern status without material uncertainties.
• Professional Property Valuation: Investment property valuation is recent (Dec 2023) and performed by RICS-registered valuers, supporting asset valuation reliability.

4. Due Diligence Notes:

• Investigate the source and timing of cash flows, as the negative working capital position suggests potential liquidity constraints despite strong fixed assets.
• Review related party transactions and intercompany loan arrangements given the complex ownership structure and potential funding dependencies within the group.
• Confirm the nature of investment property income streams and lease agreements to understand revenue generation and cash inflows.
• Assess contingent liabilities or provisions (~£2.29 million) to determine any risks that might impact solvency or operational stability.
• Verify the absence of director disqualifications or regulatory issues given the concentrated control and multiple director changes.