PALM LEAF DEVELOPMENTS LTD

Executive Summary

Palm Leaf Developments Ltd exhibits a low-risk profile with stable net assets anchored by significant fixed assets in real estate. The company maintains good compliance and operational consistency at a micro level but warrants further review of liquidity and governance due to concentrated ownership and modest current asset levels. Overall, the business appears financially solvent and operationally stable based on available data.

PALM LEAF DEVELOPMENTS LTD - Analysis Report

Company Number: 13278752

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: LOW

Justification: The company demonstrates strong net asset positions consistently over the last five years, with net assets exceeding £1.2 million and positive working capital. There are no overdue filings or indications of regulatory non-compliance. The business appears stable with fixed assets maintained at £1.2 million, suggesting asset-backed operations in real estate letting.

2. Key Concerns:

• Low liquidity levels: Current assets are relatively modest (£26,701 in 2025) compared to fixed assets, which may constrain short-term cash flow flexibility.
• Limited scale of operations: The company operates at micro-entity scale with only two employees and minimal turnover data, which could indicate limited operational diversification.
• Concentrated ownership and control: Two directors hold significant ownership (75% combined) and control, which could pose governance risks if conflicts arise.

3. Positive Indicators:

• Consistent positive net current assets and net asset growth year on year.
• No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Asset base focused on real estate letting, typically providing stable income streams.
• Directors have maintained their positions since incorporation, showing stability in management.

4. Due Diligence Notes:

• Review detailed cash flow statements and income figures to assess operational liquidity beyond balance sheet snapshots.
• Confirm the nature, valuation, and encumbrances (e.g., mortgages) on the £1.2 million fixed assets.
• Investigate the contractual and tenancy arrangements underpinning the letting business.
• Assess the governance structure given the concentrated ownership and whether any related party transactions exist.
• Verify if any contingent liabilities or off-balance-sheet risks are disclosed in fuller accounts or board minutes.