PE COLIVING 2 LTD

Executive Summary

Pe Coliving 2 Ltd demonstrates significant solvency and liquidity risks due to persistent negative net assets and heavy long-term liabilities relative to current assets. While regulatory filings are up to date and fixed assets remain stable, the absence of operational scale and ongoing losses raise concerns regarding business sustainability. Further detailed financial review and assessment of debt structure are recommended to confirm investment viability.

PE COLIVING 2 LTD - Analysis Report

Company Number: 13150974

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets indicating insolvency on a balance sheet basis. Its current liabilities substantially exceed current assets, raising concerns about short-term liquidity and ability to meet obligations. The company has no employees other than the director and relies on a single individual with full control, which may limit operational stability.

2. Key Concerns:

• Negative net assets (~£91,500) persisting over multiple years, signaling ongoing solvency risk.
• Current liabilities exceed current assets by a wide margin, with creditors after more than one year totaling over £857,000, indicating significant long-term debt obligations.
• Lack of operational scale and revenue evidence (zero employees reported) raises questions about business sustainability and cash flow generation.

3. Positive Indicators:

• Company is filing accounts and confirmation statements on time, showing regulatory compliance and good governance practice in this regard.
• Fixed assets have remained stable around £700,000, which may represent valuable underlying property assets supporting the business.
• The sole director and 75-100% shareholder appears stable with no disqualifications or red flags noted.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial long-term liabilities (~£857,000) to assess repayment capacity and any potential refinancing risks.
• Review cash flow statements or management accounts if available to understand operational cash generation and liquidity beyond balance sheet snapshots.
• Clarify business model and revenue streams given the absence of employees and minimal current assets, to evaluate sustainability and growth prospects.
• Confirm any related party transactions or director loans that may impact financial position.
• Consider property valuation of fixed assets to verify balance sheet asset quality.