MICHAN PROPERTY GROUP LTD

Executive Summary

Michan Property Group Ltd exhibits a stable and improving financial position with strong net current assets and no regulatory compliance issues. However, the heavy concentration of current assets in debtors and reliance on director loans warrant further investigation to ensure liquidity and operational sustainability. Overall, risk appears low based on available data, but additional due diligence on cash flow and business operations is recommended.

MICHAN PROPERTY GROUP LTD - Analysis Report

Company Number: 13910278

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

1. Risk Rating: LOW
   The company demonstrates a strong solvency position with net current assets of £302,038 as at 31 March 2024 and positive shareholders’ funds of the same amount. There are no overdue filings or indications of regulatory non-compliance. The company is active and appears to be managing its operations in a financially stable manner.

2. Key Concerns:

• High Debtors Balance: The current assets are predominantly debtors (£320,816), with only £10 cash on hand, which may indicate potential liquidity constraints if debtor collection is delayed.
• No Employees: The average number of employees is NIL for the current year, which may raise questions about operational capacity or reliance on external contractors.
• Directors’ Current Accounts as Creditors: A significant portion of current liabilities (£18,261) relates to directors’ current accounts, suggesting reliance on director loans or deferred payments that warrants monitoring.

3. Positive Indicators:

• Improved Financial Position: Substantial improvement from prior year’s negative net current assets (-£1,363) to a strong positive position (£302,038).
• Timely Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings.
• Clear Ownership and Control: Ownership and control are transparent, with two directors holding majority shares and voting rights, reducing governance complexity.

4. Due Diligence Notes:

• Investigate the nature and collectability of the debtor balances to assess liquidity risk more accurately.
• Clarify the operational model given the absence of employees and determine how property management activities are conducted.
• Review the directors’ current accounts to understand the terms and duration of these liabilities and their potential impact on cash flow.
• Confirm the company’s revenue streams and profitability, as the income statement was not filed per small companies regime exemption.
• Assess the company’s business plan and sustainability in the real estate management sector given its recent incorporation (2022).