MUNAHID PROPERTIES LTD

Executive Summary

Munahid Properties Ltd is a micro-entity operating in real estate with a currently negative net asset position and significant long-term liabilities. However, liquidity improvements and compliance with filing obligations provide some reassurance. Further investigation is warranted into the underlying causes of the solvency concerns and the nature of creditor relationships before making an investment decision.

MUNAHID PROPERTIES LTD - Analysis Report

Company Number: 13442339

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain as evidenced by negative net assets in the latest year, but there are no overdue filings or indications of insolvency proceedings. The financial position requires close monitoring.

2. Key Concerns:

• Negative Net Assets (£-1,099 as of 2024): The company’s net liabilities position indicates that total liabilities exceed assets, a solvency red flag.
• High Long-Term Creditors (£318,881): Significant amounts owed beyond one year may indicate reliance on external financing or related party loans.
• Limited Equity and Share Capital (£2): Very low share capital and negative shareholder funds suggest a weak capital base, raising concerns about absorbing financial shocks.

3. Positive Indicators:

• Improved Current Assets and Net Current Assets: Current assets increased substantially from £34,779 to £105,547, improving liquidity and working capital position.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance.
• Consistent Fixed Asset Base (£213,000): Stable fixed asset value suggests no impairment or disposals, indicating some asset backing.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term creditors to assess repayment risks and potential refinancing needs.
• Investigate reasons for negative net assets despite improved working capital – e.g., accumulated losses or revaluation adjustments.
• Review cash flow statements and any related party transactions to evaluate operational cash generation and financial support.
• Confirm the status and ongoing role of the sole director, including any personal guarantees or involvement in financing.
• Assess business model sustainability given only one employee and the scale of liabilities relative to capital.