Company Number: 15113115

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: HIGH
   Given the very limited operating history (incorporated in September 2023), negative net current assets (£-50), and shareholders' deficit (£-50) within the first financial period, PROPSERVE GROUP LTD exhibits a high risk profile. The minimal cash balance (£872) relative to current liabilities (£922) indicates tight liquidity, raising concerns about the company's ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £50 suggest the company does not currently have sufficient short-term assets to cover its immediate liabilities, posing solvency risks.
• Shareholders' Deficit: A negative shareholders’ funds position (£-50) after less than one year of operation implies accumulated losses or insufficient capital injection, potentially undermining financial stability.
• Limited Financial History & Transparency: The company filed under the small company exemption regime with no income statement disclosed, limiting insight into operational performance and cash flow generation.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date with no overdue submissions, demonstrating regulatory compliance and governance discipline.
• No Audit Requirement: Filing under the small company exemption reduces administrative burden and costs, appropriate for the current scale of operations.
• Clear Ownership Structure: The presence of identifiable persons with significant control, including one director with substantial shareholding and voting rights, suggests established governance arrangements.

4. Due Diligence Notes:

• Review the detailed income statement and cash flow statements once available to assess operational cash generation and profitability trends.
• Investigate the nature and terms of the current liabilities (£922) to determine if these are trade creditors, loans, or other obligations and their maturity profiles.
• Assess capital contribution plans or funding arrangements from shareholders or third parties to address the negative equity and working capital shortfall.
• Clarify the business model and revenue generation strategy given the SIC code 96090 (“Other service activities not elsewhere classified”), which is broad and non-specific.
• Monitor director changes and control shifts, especially given the recent resignation of one director and the involvement of a corporate entity as a PSC.