MORGAN PROPERTY DEVELOPMENTS GROUP LTD

Executive Summary

The company is in an early stage with limited financial history and a weak liquidity position evidenced by negative net current assets and minimal equity. While it maintains compliance with filing obligations and holds some fixed assets aligned with its real estate trading activity, the lack of operational data and working capital shortfall present significant short-term solvency risks. Further due diligence on asset quality and cash flow projections is recommended to better understand its financial resilience.

MORGAN PROPERTY DEVELOPMENTS GROUP LTD - Analysis Report

Company Number: 14469490

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   Justification: The company shows a negative working capital position with current liabilities (£20,911) exceeding current assets (£9,107), resulting in net current liabilities of £11,804. Although net assets are positive (£347), the minimal equity base and the negative working capital suggest potential short-term liquidity issues. The company is newly incorporated (Nov 2022) with only one year of financial history, limiting the ability to assess operational sustainability.

2. Key Concerns:

• Liquidity Risk: Negative net current assets indicate the company may struggle to meet short-term obligations as they fall due.
• Minimal Equity Buffer: Shareholders’ funds of only £347 provide very limited capital cushion against losses or unexpected expenses.
• Lack of Operational History: Incorporated less than two years ago with no employees and limited activity, making it difficult to gauge business viability or revenue generation capability.

3. Positive Indicators:

• Compliance: Filing of accounts and confirmation statement are up to date, indicating adherence to statutory requirements and governance discipline.
• Directors’ Control: Both directors are also significant shareholders with rights to appoint/remove directors, suggesting consolidated management and potential alignment of interests.
• Asset Base: Presence of fixed assets (£12,149) may represent some initial investment in property, aligning with the company’s SIC code related to real estate trading.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to determine if they can be leveraged or sold to improve cash position.
• Review cash flow forecasts or bank statements to assess operational cash inflows and outflows given the negative working capital.
• Examine business model and contracts or pipeline for property transactions to understand revenue generation prospects.
• Confirm no contingent liabilities or undisclosed debts exist that could exacerbate financial strain.
• Evaluate the background and financial strength of directors/shareholders to assess support capacity in times of financial stress.