MIRANI PROPERTIES LTD

Executive Summary

Mirani Properties Ltd is an active private company operating in the real estate sector with solid short-term liquidity but exhibits negative net assets and relies on significant related-party funding. While regulatory compliance is up to date and management appears stable, the company’s solvency position and reliance on parent support warrant close monitoring. Further due diligence on related-party loans and operational cash flows is recommended to fully assess financial stability.

MIRANI PROPERTIES LTD - Analysis Report

Company Number: 13151863

Analysis Date: 2025-07-29 20:57 UTC

1. Risk Rating: MEDIUM
   While Mirani Properties Ltd has an active status with no overdue filings and maintains positive net current assets, the company exhibits net liabilities and negative shareholders’ funds, which pose a moderate solvency risk. The company relies on financial support from its parent entity, which mitigates immediate concerns but suggests underlying capital adequacy issues.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £54,652 as of January 2024, worsening from a net liability of £23,285 in the previous year, indicating accumulated losses or capital erosion.
• Significant Long-Term Creditors: The company owes £337,688 to Mirani Holding B.V., its sole shareholder, representing a sizeable related-party loan that may affect financial flexibility and creditor priority.
• Reliance on Director and Parent Company Support: The directors have confirmed ongoing financial support to continue as a going concern, which indicates potential liquidity constraints or insufficient operating cash flow.

3. Positive Indicators:

• Positive Net Current Assets: Despite net liabilities overall, the company shows strong net current assets (£282,918 in 2024), suggesting it can meet short-term liabilities with current assets.
• No Overdue Filings: The company has maintained compliance with Companies House requirements, with no overdue accounts or confirmation statements, reflecting sound governance in regulatory matters.
• Stable Management and Ownership: Directors have been in place since incorporation, and ownership is clear with a single controlling shareholder, reducing governance complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the loan from Mirani Holding B.V., including interest rates, repayment schedules, and subordination agreements.
• Review cash flow statements or management accounts to assess operational cash generation and liquidity beyond balance sheet snapshots.
• Examine the company’s business model and revenue streams in the real estate buying and selling sector, especially given the accumulated losses and negative equity.
• Confirm the extent and conditions of financial support promised by directors and the parent company to understand going concern sustainability.
• Assess related party transactions with Mirani Invest Ltd and their impact on the company’s financial position.