MARSHANN PROPERTY MANAGEMENT LTD

Executive Summary

Marshann Property Management Ltd shows significant financial strain with worsening liquidity and negative equity despite growth in investment properties. The company’s reliance on director loans and large current liabilities pose solvency risks. However, compliance with filing requirements and asset acquisition indicate ongoing operations. Further inquiry into cash flow management and loan terms is essential to fully assess financial sustainability.

MARSHANN PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: SC736193

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as demonstrated by consistent negative net current assets, increasing current liabilities, and negative shareholders’ funds. Despite asset growth, the overall financial position has deteriorated, indicating elevated financial risk.

2. Key Concerns:

• Liquidity Stress: The company’s net current liabilities worsened from -£116,919 in 2023 to -£213,992 in 2024, suggesting cash flow difficulties and inability to cover short-term obligations without additional financing.
• Negative Equity: Shareholders’ funds declined sharply from £82,340 in 2023 to -£3,392 in 2024, indicating accumulated losses or increased liabilities exceeding asset base.
• Reliance on Director Loans: A substantial amount (£220,662) of current liabilities comprises director loan accounts, which may pose refinancing or related-party risk if these funds are withdrawn or unavailable.

3. Positive Indicators:

• Growth in Fixed Assets: Investment properties increased from £203,874 to £298,361, indicating asset acquisition and potential for future income or capital appreciation.
• Compliance: The company is active with no overdue filings or accounts, demonstrating adherence to regulatory requirements to date.
• Small Company Exemption: Utilization of small companies regime and audit exemption reduces administrative burden, consistent with company size and operational scale.

4. Due Diligence Notes:

• Verify the nature and terms of director loans, including repayment schedules and security arrangements.
• Assess cash flow projections and working capital management plans to understand how the company intends to address liquidity deficits.
• Investigate the valuation methodology and market conditions for investment properties to confirm asset values and potential for revenue generation.
• Review any contingent liabilities or off-balance-sheet commitments that may impact financial stability.
• Confirm no director disqualification or governance issues as none are reported but require standard checks.