NGO PROPERTY HOLDINGS LIMITED

Executive Summary

Ngo Property Holdings Limited exhibits high financial risk due to persistent negative net assets and significant working capital deficits, compounded by substantial long-term liabilities exceeding asset values. While compliance and asset base provide some positive indicators, further investigation into debt terms and operational performance is recommended before considering investment.

NGO PROPERTY HOLDINGS LIMITED - Analysis Report

Company Number: 13175406

Analysis Date: 2025-07-29 17:24 UTC

1. Risk Rating: HIGH
   The company presents significant solvency risks evidenced by persistent net liabilities and negative shareholders’ funds over multiple years. The negative net current assets indicate liquidity stress, and the high level of long-term creditors relative to assets suggests leverage concerns.

2. Key Concerns:

• Persistent Negative Net Assets: The company has reported net liabilities ranging from approximately -£7,200 to -£15,200 over the last four years, indicating ongoing losses or accumulated deficits eroding shareholder equity.
• Negative Working Capital: Current liabilities significantly exceed current assets by over £100,000, signaling potential cash flow difficulties in meeting short-term obligations.
• High Long-Term Debt: Creditors due after one year stand at £234,109 consistently, exceeding total fixed assets, which raises questions about debt servicing capacity and refinancing risk.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds fixed assets valued at approximately £333,000, which could represent real estate given the SIC code (68100 - Buying and selling of own real estate) and may provide collateral or recovery value.
• Compliance with Filing Requirements: Accounts and confirmation statements are up-to-date and not overdue, reflecting good regulatory compliance and governance practices.
• Experienced Directors: The two directors are professionals residing in London, with one acting as a solicitor, potentially adding legal and operational expertise.

4. Due Diligence Notes:

• Nature and Terms of Creditors: Detailed review of the £234,109 long-term creditors is essential to understand repayment schedules, interest obligations, and any covenants impacting financial flexibility.
• Revenue and Profitability Trends: As only balance sheet data is available, investigation into income statement details and cash flow statements is necessary to assess operational sustainability.
• Asset Valuation and Liquidity: Verification of fixed asset valuations and their market liquidity, especially given the real estate focus, to evaluate potential for asset sales or refinancing.
• Directors’ Plans and Strategic Outlook: Understanding management’s strategy to address negative equity and working capital deficits is critical, including any capital injections or restructuring plans.