PARAGON PLACE LIMITED

Executive Summary

Paragon Place Limited is a focused micro-entity in the real estate investment and leasing sector with improving financial health and strong owner control. Its key strategic assets lie in its property portfolio and streamlined governance, presenting opportunities for measured portfolio expansion and operational scaling. However, financial leverage and market volatility represent critical risks that must be managed to ensure sustainable growth and competitive positioning.

PARAGON PLACE LIMITED - Analysis Report

Company Number: 14164068

Analysis Date: 2025-07-20 16:08 UTC

1. Executive Summary
   Paragon Place Limited operates in the niche segment of owning, letting, and trading in real estate, positioning itself as a small-scale private property management and investment firm based in Birmingham. Despite being a micro-entity with modest financial scale and limited employee count, the company has demonstrated positive net asset growth and is supported by a controlling shareholder with significant influence, enabling stable governance and strategic decision-making.

2. Strategic Assets

• Real Estate Holdings: The company’s primary strategic asset is its fixed assets totaling £392,621 as of March 2024, reflecting property investments that underpin its core business activities.
• Ownership and Control: With Mr. Herain Sahota holding 75-100% ownership and controlling voting rights, the company benefits from streamlined decision-making and clear strategic direction.
• Financial Improvement: The turnaround from negative net assets (£-10,664 in 2023) to a positive net asset position (£12,759 in 2024) indicates improving financial health and operational stability.
• Niche Market Focus: Operating under SIC codes 68100 and 68209, the company targets the buying, selling, and leasing of its own real estate, allowing focused expertise and operational simplicity.

3. Growth Opportunities

• Portfolio Expansion: Leveraging existing property assets and improving capital structure could enable acquisition of additional real estate, amplifying rental income and capital appreciation potential.
• Operational Efficiency: With only two employees, there is scope to enhance operational capabilities by investing in technology for property management or expanding the team to support scaling activities.
• Capital Structure Optimization: The company’s current liabilities, especially long-term creditors (£292,485), suggest refinancing or restructuring debt could improve liquidity and free up capital for growth initiatives.
• Market Positioning: Birmingham’s property market dynamics can be exploited through targeted marketing and service differentiation, such as specialized leasing services or redevelopment projects, to capture higher-margin segments.

4. Strategic Risks

• Financial Leverage: High creditor balances relative to assets pose liquidity risks and may constrain agility in responding to market opportunities or downturns.
• Scale Limitations: Being a micro-entity restricts economies of scale, potentially limiting competitive positioning against larger real estate firms with broader portfolios and resources.
• Market Volatility: Real estate markets are susceptible to macroeconomic fluctuations, regulatory changes, and local demand-supply shifts, which could impact asset valuations and rental yields.
• Dependence on Key Personnel: Concentrated ownership and control imply strategic continuity is heavily reliant on a small leadership group, presenting succession and governance risks.