OVDOM PROPERTIES LTD

Executive Summary

Ovdom Properties Ltd is a micro-entity with significant negative net assets and a current liquidity shortfall, presenting a high risk profile from a solvency and cash flow perspective. While regulatory compliance is up to date and ownership is stable, the lack of operational scale and worsening financial position warrant careful scrutiny of underlying business activities and cash generation capabilities. Further financial detail and operational insight are recommended to fully assess sustainability.

OVDOM PROPERTIES LTD - Analysis Report

Company Number: 12927008

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significantly higher current liabilities relative to current assets, indicating potential solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The financial statements for the year ending 31 October 2023 show net assets of -£1,242, a deterioration from -£792 the previous year, signaling the company is technically insolvent on a balance sheet basis.
• Liquidity Deficit: Current liabilities (£1,300) considerably exceed current assets (£57), resulting in negative net current assets of -£1,243, which raises concerns about the company’s ability to meet short-term obligations as they fall due.
• No Employees / Operational Scale: The company has reported zero employees over multiple years, suggesting limited operational activity or reliance on external parties. Coupled with micro-entity status and minimal fixed assets (only £1), this raises questions about the sustainability and scale of business operations.

3. Positive Indicators:

• Timely Filings: The company has complied with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• Clear Ownership and Control: Ovdom Ltd owns 75-100% of shares and voting rights and controls director appointments, suggesting stable governance at the ownership level.
• Going Concern Assertion: The director’s report states an expectation of adequate resources and continued operations, reflecting management’s confidence in future prospects.

4. Due Diligence Notes:

• Examine Cash Flow and Income Statement: The absence of an income statement in filings limits assessment; request detailed profit and loss data and cash flow statements to verify operational performance and liquidity dynamics.
• Investigate Nature and Timing of Liabilities: Review creditor composition and payment terms to understand the drivers of high current liabilities and whether these are sustainable.
• Assess Business Model and Revenue Streams: Clarify how the company generates income given the absence of employees and minimal asset base, particularly in the real estate letting sector, to evaluate operational viability.