OSMANS REAL ESTATE LTD

Executive Summary

OSMANS REAL ESTATE LTD is a micro-entity operating in real estate management with a modestly improving but still fragile financial position. The company carries significant long-term liabilities relative to assets and maintains minimal liquidity, posing medium solvency risk. Continued regulatory compliance is a positive, but further investigation into debt terms and operational cash flow is advised to fully assess financial stability.

OSMANS REAL ESTATE LTD - Analysis Report

Company Number: 13917244

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   The company shows a modest improvement in net assets from a negative position (£-480) to a slightly positive position (£570) over two years, which is encouraging but still indicates a very thin equity buffer. The fixed assets are stable, but the high level of long-term creditors relative to net assets remains a concern.

2. Key Concerns:

• High Leverage and Long-Term Liabilities: The company's creditors falling due after more than one year (£81,069) nearly match its total assets, indicating significant debt burden which could strain solvency if cash flows weaken.
• Low Liquidity and Working Capital: Current assets remain very low (£2,730), with current liabilities slightly exceeding current assets in prior years; net current assets improved but are still minimal (£1,600), suggesting limited short-term liquidity cushion.
• Minimal Scale and Operational Base: With only one employee (the director) and micro-entity classification, the company appears very small and may lack operational diversification or scale to absorb financial shocks.

3. Positive Indicators:

• Improvement in Net Assets: The transition from negative shareholders' funds to a small positive balance indicates some strengthening of financial position.
• Compliance and Filing: All filings are up to date with no overdue accounts or confirmation statements, demonstrating sound regulatory compliance.
• Stable Fixed Assets: The fixed assets position remains consistent, implying no asset write-downs or disposals, which may provide collateral value.

4. Due Diligence Notes:

• Nature and Terms of Long-Term Creditors: Investigate the composition, interest rates, maturity, and covenants of the £81k long-term liabilities to assess refinancing risks and debt servicing capacity.
• Cash Flow and Profitability Trends: Obtain detailed management accounts or cash flow statements to evaluate operational cash generation and ability to meet obligations, especially given minimal current assets.
• Business Model Sustainability: Understand the company's revenue streams within real estate management and agency activities, contract durations, and client diversification to assess operational stability.
• Director and Governance Review: Given the single director and shareholder structure, confirm governance arrangements and any related party transactions that may affect financial health.