S TURNER PROPERTY LTD

Executive Summary

S Turner Property Ltd exhibits a concerning financial position characterized by negative net assets and high long-term liabilities relative to limited cash resources. While the company maintains regulatory compliance and has invested in fixed assets, the current solvency and liquidity indicators present significant risk. Further due diligence on debt terms, operational cash flows, and asset valuation is essential to assess the company’s viability.

S TURNER PROPERTY LTD - Analysis Report

Company Number: 13888066

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH

   Justification: The company shows negative net assets and shareholders’ funds for multiple years, indicating insolvency on a balance sheet basis. There is a significant level of long-term liabilities (£401,544) compared to limited cash availability (£13,155), pointing to liquidity pressures. The company is also very young (incorporated in 2022), which increases operational risk given limited financial history.

2. Key Concerns:

   • Solvency risk: Negative net assets (£-3,994 as of 2024) and shareholders’ funds suggest the company is technically insolvent, relying on creditor funding.
   • Liquidity concerns: Cash on hand is minimal (£13,155) relative to current liabilities due, raising questions about short-term cash flow sufficiency.
   • High debt levels: Substantial bank loans and other creditors falling due after one year (£401,544 in 2024) may strain financial flexibility, especially without clear revenue or profitability data.

3. Positive Indicators:

   • Asset growth: Tangible fixed assets (land and buildings) increased from £254,315 to £384,395 year-on-year, indicating investment in potentially appreciating assets.
   • No overdue filings: Both accounts and confirmation statements are up to date, showing regulatory compliance.
   • Single controlling shareholder: Clear ownership structure with a single PSC holding 75-100% shares and voting rights, which can facilitate decision-making.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term liabilities, specifically the bank loan and other creditors, to assess repayment schedules and covenants.
   • Review the company’s revenue streams and profitability metrics (not provided here) to evaluate operational sustainability.
   • Confirm the valuation and liquidity of the tangible fixed assets and whether these can be leveraged or sold if needed.
   • Understand the business plan since incorporation and any plans for capital injection or debt restructuring to improve solvency.
   • Verify that there are no director disqualifications or governance issues beyond what is stated.