PADDINGTON APARTMENTS LIMITED

Executive Summary

Paddington Apartments Limited is a recently incorporated property letting company showing signs of financial distress, with net liabilities and a large creditor balance outweighing current assets. While filings are up to date and ownership is clear, significant concerns exist around solvency, liquidity, and operational sustainability due to limited financial transparency and lack of employees. Further investigation into debtor collectability and creditor terms is essential before considering investment.

PADDINGTON APARTMENTS LIMITED - Analysis Report

Company Number: 13493801

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH

Justification: The company shows net liabilities (negative net assets) of £26,467 as at 31 July 2023, indicating it is balance sheet insolvent. Current liabilities exceed cash on hand and there is a significant creditor balance due after more than one year (£279,343). The absence of employees and the early stage of the company (incorporated 2021) further suggest operational fragility.

2. Key Concerns:

• Solvency risk: Net liabilities and significant long-term creditors raise concerns about the company’s ability to meet its financial obligations.
• Liquidity concerns: Cash balance is very low (£6,151) relative to current liabilities (£8,603) and there is a large debtor amount (£255,328) which may not be readily convertible to cash.
• Operational stability: No employees reported, and no income statement provided, limiting insight into revenue generation or profitability. The company relies heavily on debt financing.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statement) with no overdue submissions.
• Ownership and control are consolidated under a single individual with full voting rights, potentially allowing for swift decision-making.
• The company has a clear business purpose classified under real estate letting and operating activities, which can be a stable sector if managed properly.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance (£255,328) to assess if it is recoverable.
• Clarify the terms and conditions of the long-term creditor balance (£279,343) – interest rates, repayment schedule, and creditor identity.
• Obtain management accounts or internal financial reports to evaluate operational cash flow and revenue generation given the lack of income statement.
• Review director background and any potential contingent liabilities or related party transactions.
• Confirm going concern status as assessed by the directors in the absence of an audit.