MR PROPERTY DEVELOPMENT LTD

Executive Summary

MR Property Development Ltd, a recently incorporated real estate private limited company, currently exhibits a high risk profile due to negative net assets and working capital deficits. While compliant with filing requirements and led by stable directors, its financial position suggests solvency and liquidity challenges requiring further investigation. Investors should carefully examine the company’s long-term liabilities, cash flow prospects, and business viability before commitment.

MR PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 14971677

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (£-41,637) and net current liabilities (£-97,680) despite being newly incorporated with only one financial year of data. The presence of significant liabilities due after more than one year (£124,669) further stresses solvency concerns. Negative shareholders’ funds and working capital deficits indicate elevated financial risk.

2. Key Concerns:

• Solvency risk: Net liabilities and negative shareholders’ funds signal the company is currently insolvent on a balance sheet basis.
• Liquidity issues: Negative net current assets suggest inability to cover short-term obligations with current assets, raising cash flow concerns.
• Operational scale and sustainability: With only two employees and minimal assets, the company appears in an early and fragile stage of development, making ongoing viability uncertain.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Experienced directors: Both directors have been in place since incorporation and appear to have stable residency and control.
• Clear industry focus: The company operates in real estate letting/management (SIC 68209), a sector with tangible asset backing potential.

4. Due Diligence Notes:

• Investigate the nature and terms of the £124,669 creditors due after more than one year to understand long-term obligations and refinancing risk.
• Review cash flow projections and any planned capital injections or asset disposals to address negative working capital and net liabilities.
• Assess the business plan and contracts underpinning the fixed assets of £181,792 to evaluate revenue generation and operational sustainability.
• Confirm no undisclosed contingent liabilities or related party transactions that might exacerbate financial risk.
• Monitor director backgrounds for any prior insolvency involvement or disqualifications (none apparent here, but prudent to verify).