NOCO MCGIMPSEY PROPERTIES LTD

Executive Summary

Noco McGimpsey Properties Ltd is currently facing high financial risk characterized by negative equity and working capital deficits. While liquidity has improved via increased cash holdings, significant concerns remain regarding solvency and asset valuation. The company’s operational sustainability warrants detailed review, especially in relation to liabilities and asset quality.

NOCO MCGIMPSEY PROPERTIES LTD - Analysis Report

Company Number: 13468268

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has deteriorated over recent years, coupled with persistent net current liabilities, indicating solvency and liquidity challenges. The lack of independent valuation of investment properties and a small asset base relative to liabilities further accentuates financial risk.

2. Key Concerns:

• Negative Equity Position: Net liabilities increased from £924 in 2023 to £5,639 in 2024, reflecting accumulated losses and shareholder deficit.
• Working Capital Deficit: Net current assets remain negative (£-51,505 in 2024), with current liabilities exceeding current assets, suggesting potential cash flow constraints.
• Valuation and Asset Quality: Investment property value declined from £88,138 to £46,244 without independent valuation, raising questions about asset recoverability and fair value reliability.

3. Positive Indicators:

• Cash Increase: Cash balance improved substantially from £10,799 in 2023 to £67,403 in 2024, which may provide short-term liquidity buffer.
• Stable Debtors: Trade debtors remain consistent at £80,000, indicating predictable receivables.
• Compliance: Company is up to date with accounts and confirmation statement filings, with no overdue returns or penalties noted.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the £80,000 debtors balance to assess liquidity risk.
• Clarify the rationale and methodology behind the investment property valuation, especially given the absence of independent valuation and significant disposals.
• Review the terms and creditors behind the current liabilities of £198,908 to understand short-term obligations and potential refinancing requirements.
• Assess directors’ plans for addressing the negative equity and working capital deficits to understand sustainability and operational continuity.