PE PROPERTY LTD

Executive Summary

PE Property Ltd is a newly incorporated property company with net liabilities and negative working capital shortly after inception. The business currently relies heavily on director loans to support operations and exhibits liquidity constraints, raising concerns about its financial sustainability. While statutory compliance is maintained, further due diligence on financial performance and asset quality is essential before investment consideration.

PE PROPERTY LTD - Analysis Report

Company Number: SC752577

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: HIGH
   Justification: The company shows net liabilities and negative shareholders’ funds shortly after incorporation, with significant liabilities exceeding current assets by a large margin. The reliance on director loans to maintain solvency poses a material risk to financial stability.

2. Key Concerns:

• Solvency Risk: Net liabilities of £2,477 and negative working capital of £24,853 indicate the company cannot currently meet all its obligations from available liquid resources without additional support.
• Liquidity Concerns: Cash balances are minimal (£2,987) against current liabilities (£28,254), suggesting cash flow constraints. The company depends on director loans (£25,901) which lack fixed repayment terms or interest, reflecting a potential funding vulnerability.
• Operational Stability: The company has no employees and limited income details disclosed; it is newly incorporated with a short trading history, making sustainability and ongoing viability uncertain. The absence of an income statement limits assessment of profitability and cash generation.

3. Positive Indicators:

• The company is current with all filings and there are no overdue accounts or confirmation statements, indicating compliance with statutory obligations.
• Directors have committed to maintaining financial support, which may provide some short-term stability.
• The company owns tangible fixed assets (land and buildings valued at £79,067), suggesting some asset backing to liabilities.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including the likelihood and timing of repayment or conversion into equity.
• Obtain detailed cash flow and income statements to assess operating performance and the ability to generate sustainable cash flows.
• Review any contingent liabilities or contractual obligations not disclosed in the accounts.
• Evaluate the property assets’ valuation and marketability to understand potential realizable value.
• Confirm no regulatory or legal actions or director disqualifications are pending beyond public records.