PROPERTY SWITCH LTD.

Executive Summary

PROPERTY SWITCH LTD presents medium risk due to deteriorating liquidity and a halving of equity within the last financial year, despite maintaining statutory compliance and stable operations. The company’s negative working capital signals potential short-term cash flow challenges. Further investigation into cash flow management and the reasons for equity erosion is recommended to better understand solvency and operational stability.

PROPERTY SWITCH LTD. - Analysis Report

Company Number: 13601065

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: MEDIUM
   Justification: PROPERTY SWITCH LTD shows some signs of financial strain particularly in working capital, with net current liabilities recorded in the latest year. While the company is still solvent on a net asset basis, the decline in shareholders’ funds and reduced current assets relative to liabilities suggest caution. The company is micro-sized, limiting disclosure detail, and has no audit, which restricts full transparency.

2. Key Concerns:

• Negative net current assets (£2,087) as at 30 September 2024 indicate potential liquidity pressures to meet short-term obligations.
• Significant decrease in net assets and shareholders’ funds from £15,309 in 2023 to £7,551 in 2024, halving the equity base in one year.
• Reliance on a single director who is also the 75-100% shareholder, which may pose governance risk and concentration of control.

3. Positive Indicators:

• The company is current on all statutory filings, including accounts and confirmation statements, indicating regulatory compliance.
• No audit required or requested due to micro-entity status, which is consistent with its small size and limited complexity.
• Stable employee number (2 persons) suggests consistent operational scale without headcount volatility.

4. Due Diligence Notes:

• Investigate the company’s cash flow situation in more detail, particularly how it manages to meet short-term liabilities given the negative working capital in 2024.
• Review the causes behind the sharp reduction in shareholders’ funds, including any losses or distributions made during the year.
• Clarify the business model and revenue streams associated with SIC 68320 (management of real estate on a fee or contract basis) to assess operational sustainability.
• Confirm if the director/shareholder is providing any financial support or guarantees, given the equity decline and liquidity concerns.
• Verify that no undisclosed liabilities or contingent risks exist, as limited disclosures typical of micro-entities can mask underlying issues.