SA PROPERTIES (BIRMINGHAM) LIMITED
Company number 02916049 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: SA PROPERTIES (BIRMINGHAM) LIMITED
1. Credit Opinion: CONDITIONAL
The company presents a mixed credit profile. While net assets of £212,279 demonstrate a positive balance sheet, the severe liquidity position—with net current liabilities of £164,578 and current assets of just £4,119—raises significant concerns about short-term debt servicing capacity. The recent name change from BOUNDARY SPORTS LIMITED (August 2024) and apparent pivot from retail to property investment introduces business model uncertainty. Any credit facility would require robust security against the company's property assets and covenants addressing the working capital deficiency.
Key concern: The current ratio stands at approximately 0.02:1, indicating the company cannot meet near-term obligations from liquid resources.
2. Financial Strength
Balance Sheet Composition (November 2024):
| Item | 2024 | 2023 | Movement |
|---|---|---|---|
| Fixed Assets | £405,374 | £407,182 | -£1,808 |
| Current Assets | £4,119 | £151,169 | -£147,050 |
| Current Liabilities | £168,697 | £306,873 | -£138,176 |
| Long-term Liabilities | £28,517 | £39,306 | -£10,789 |
| Net Assets | £212,279 | £212,172 | +£107 |
Analysis:
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Asset concentration risk: Fixed assets constitute 99% of total assets, almost certainly property given the company's new name. This provides collateral value but creates significant illiquidity.
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Net asset stability: Shareholders' funds have remained in a narrow band (£212k-£282k) over the past decade, suggesting the underlying property value provides a floor. However, the downward drift from £282,123 (2022) to £212,279 (2024) warrants attention.
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Liability reduction: Current liabilities decreased by £138,176 year-on-year, which is positive. However, this appears to have been funded by depleting current assets rather than from trading cash flows.
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Capitalisation: Share capital of only £100 is negligible. The balance sheet is funded almost entirely through retained profits and creditor balances, suggesting owner withdrawals may be occurring.
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Micro entity filing: The company files minimal accounts, which significantly limits visibility into profitability, related-party transactions, and asset valuations. No P&L, no depreciation schedule, no related-party disclosures.
3. Cash Flow Assessment
Liquidity Position:
The liquidity position is critically weak:
| Metric | 2024 | 2023 |
|---|---|---|
| Current Ratio | 0.02:1 | 0.49:1 |
| Net Current Assets/(Liabilities) | (£164,578) | (£155,704) |
| Cash (where disclosed) | Not stated | Not stated |
Working capital deterioration: Net current liabilities have worsened by £8,874 year-on-year. The dramatic collapse in current assets from £151,169 to £4,119 suggests either: (a) a large debtor was collected and used to reduce creditors, or (b) cash/debtors were distributed to shareholders or related parties.
Historical cash position: Where disclosed, cash holdings have been minimal—£113 (2019), £125 (2017/2016), rising to £29,115 (2021) and £17,970 (2020). The absence of a disclosed cash figure for 2024 under micro-entity provisions is unhelpful, but the overall current asset position of £4,119 suggests negligible liquidity.
Debt service capability: Without P&L data, it is impossible to assess operating cash flows. However, the single-employee structure and property-holding nature suggest the company may rely on rental income or asset appreciation rather than trading profits. The ability to service additional debt from operational cash flows is unproven.
Creditor dependency: The company is significantly reliant on creditor forbearance, with current liabilities nearly 41 times current assets. Any acceleration of creditor demands would create immediate solvency pressure.
4. Monitoring Points
| Metric | Current Position | Watch Threshold | Rationale |
|---|---|---|---|
| Net current liabilities | (£164,578) | Worsening by >10% | Liquidity already critical |
| Fixed asset valuation | £405,374 | Decline >15% | Primary security and balance sheet support |
| Creditor days / concentrations | Unknown | Any significant new creditor | Already creditor-dependent |
| Related-party transactions | Not disclosed | Any material transactions | Micro accounts provide no visibility |
| Name change / business activity | Recent change | Further strategic shifts | Business model pivot adds risk |
| Filing compliance | Current | Any overdue filings | Early warning of governance issues |
| Employee count | 1 | Further reduction | Key person dependency |
Additional concerns to investigate:
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Business model transition: The name change from BOUNDARY SPORTS LIMITED to SA PROPERTIES (BIRMINGHAM) LIMITED, combined with the SIC code still showing retail (47190), suggests the business is in transition. What is the actual current trading activity? Are property assets generating rental income, or are they held for capital appreciation?
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Related-party lending: Given the PSC structure (Humara Abbas with >75% control, Sohale Abbas with >75% shares), there is a significant risk that related-party loans or withdrawals could prejudice other creditors. Micro-entity accounts provide no visibility on this.
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Creditor composition: The reduction in current liabilities from £306,873 to £168,697 is material. Who are the major creditors? Are they trade, HMRC, or related parties? The reduction could indicate settlement of preferential debts ahead of a restructuring.
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Property security: If lending is considered, what are the properties? Are they tenanted? What rental income do they generate? Are there existing charges? A land registry search is essential.
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Geographic disconnect: The company is registered in Carlisle (CA5 6HB) but named "Birmingham." This may indicate properties in the Birmingham area with administration from Cumbria, or it may reflect the historical business location.