RESTORE PROPERTIES LTD

Executive Summary

Restore Properties Ltd is a recently established property letting company with a modest asset base and minimal operating profit. While the company complies with filing requirements and holds a tangible fixed asset, its liquidity is very limited and a significant provision for liabilities warrants further scrutiny. Overall, the company presents a medium risk profile requiring careful due diligence on contingent liabilities and cash flow sustainability.

RESTORE PROPERTIES LTD - Analysis Report

Company Number: 14866444

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: MEDIUM
   Justification: Restore Properties Ltd is a newly incorporated private limited company (since May 2023) engaged in real estate letting with minimal financial history. The company holds a tangible fixed asset (investment property) valued at approximately £148k, with a modest net asset position of only £160 as of May 2024. The small amount of current assets (£74 cash) and absence of current liabilities suggest limited operational scale and liquidity. The company has a provision for liabilities nearly equal to the fixed asset value, indicating potential contingent or deferred obligations that could impact solvency. Overall, limited operating profit and very thin equity buffer raise moderate concerns.

2. Key Concerns:

• Liquidity Constraints: Cash at bank is only £74, which is negligible and insufficient to cover any unforeseen expenses or short-term obligations, raising questions about day-to-day cash flow management.
• Provision for Liabilities: The balance sheet shows a provision for liabilities of £147,667, which is substantial relative to the asset base and shareholders’ funds; this suggests possible future outflows or contingent liabilities that could impair financial stability.
• Limited Operating History and Scale: The company has no employees, generated minimal profit (£60 after tax), and operates with a single property asset leased to a third party, which may limit diversification and operational resilience.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are current with no overdue submissions, indicating good regulatory compliance so far.
• Ownership and Control Transparency: The two directors and shareholders are clearly identified, with no indication of disqualification or governance issues.
• Asset Base: Ownership of a freehold investment property valued at approximately £148k provides a tangible asset backing the business, offering some intrinsic value support.

4. Due Diligence Notes:

• Investigate the nature and reason for the £147,667 provision for liabilities to assess potential financial risks or contingencies.
• Review lease agreements and rental income stability from the single property tenant to evaluate operational cash flow reliability.
• Assess potential capital requirements or shareholder support plans given the minimal liquidity and equity base.
• Confirm any off-balance sheet commitments or guarantees not disclosed.
• Monitor director changes and any correspondence with Companies House for governance continuity, noting that the co-director Garth Rowan Mundy resigned in February 2025.