PHASE 3 PROPERTY SERVICES LTD

Executive Summary

PHASE 3 PROPERTY SERVICES LTD exhibits potential short-term liquidity pressure as evidenced by negative net current assets in its latest accounts, although net asset growth and ongoing compliance are positive signs. Its micro-entity status and minimal share capital warrant careful scrutiny of cash flow and operational sustainability. Further due diligence on liabilities composition and cash management is recommended to fully assess financial stability.

PHASE 3 PROPERTY SERVICES LTD - Analysis Report

Company Number: 13123689

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: MEDIUM
   The company shows a recent deterioration in liquidity, with net current liabilities reported in the latest year, which raises concerns about short-term cash flow. However, positive net assets and ongoing compliance with filing requirements somewhat mitigate immediate solvency fears.

2. Key Concerns:

• Negative Net Current Assets in 2024: The company recorded net current liabilities of £5,467 as of 31 January 2024, indicating potential short-term liquidity issues that could affect its ability to meet immediate obligations.
• Limited Share Capital and Scale: With only £1 share capital and being a micro-entity, the company's financial buffer is minimal, increasing vulnerability to unforeseen expenses or revenue shortfalls.
• Small Asset Base and Employee Count: The company operates with just one employee and relatively low fixed assets, which may limit operational scalability and resilience in a competitive construction/electrical installation sector.

3. Positive Indicators:

• Growing Net Assets: Despite liquidity challenges, net assets improved significantly from £132 in 2023 to £9,093 in 2024, driven by increased fixed assets and shareholder funds, suggesting some reinvestment or capital injection.
• Timely Compliance: The company is up to date with its annual accounts and confirmation statement filings, demonstrating good governance and regulatory compliance.
• Stable Directorship: The sole director has been in place since incorporation with no negative conduct records, indicating continuity in management.

4. Due Diligence Notes:

• Investigate the nature of the increased current liabilities and whether these are short-term debts, trade payables, or other obligations that may impact liquidity.
• Review cash flow statements (if available) for the latest periods to better understand operational cash generation and timing of receivables/payables.
• Assess the sustainability of business operations given the micro-entity scale and single employee, including dependency on key contracts or clients.
• Confirm whether the rise in fixed assets represents capital expenditure or intangible investments, and their liquidity or depreciation profile.
• Monitor for any forthcoming filings given the next accounts and confirmation statement due dates are in late 2025 and early 2026.