SAI PROPERTIES INTERNATIONAL LTD

Executive Summary

SAI Properties International Ltd currently faces high financial risk characterized by negative net assets and working capital deficits, indicating potential solvency and liquidity challenges. While compliant with filing requirements and governed by an active director, the company’s limited operational scale and deteriorating financial position warrant careful due diligence on its liabilities and business model viability. Investors should closely monitor its ability to generate sustainable cash flows and resolve related party debt exposure.

SAI PROPERTIES INTERNATIONAL LTD - Analysis Report

Company Number: 14175447

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: HIGH
   SAI Properties International Ltd exhibits a high risk profile primarily due to its negative net assets and shareholders’ funds as at 30 June 2024, indicating solvency concerns. The company’s current liabilities exceed its current assets, resulting in negative working capital, which raises liquidity risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net assets of -£328 and shareholders’ funds of -£428 in 2024, deteriorating from positive figures in prior years. This signals that liabilities exceed assets, undermining solvency.
• Negative Working Capital: Current liabilities of £3,245 surpass current assets of £2,917, resulting in a net current liability position (-£328). This suggests potential difficulties in meeting short-term obligations as they fall due.
• Limited Operational Scale and Financial History: Incorporated in mid-2022 with minimal turnover or asset base and only one employee (the director), the company’s scale and operational history are very limited, raising questions about business sustainability and ability to generate sufficient cash flows.

3. Positive Indicators:

• Compliance and Filing Status: The company is active and up to date with its statutory filings, including accounts and confirmation statements, with no overdue submissions.
• Clear Accounting Policies and Reporting: Financial statements are prepared under FRS 102 section 1A for small entities, and the company has opted for exemption from audit, which is common for entities of this scale.
• Director Engagement: The single director is identified with a residential address, and there are no disqualifications or governance red flags evident.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities (£3,245), especially the £2,585 owed to participating interests, to assess the risk of related party debt and repayment obligations.
• Review the company’s revenue generation and cash flow forecasts to evaluate the path to profitability and asset growth, as current financials show minimal activity and negative equity.
• Confirm the business model viability in the real estate management and letting sector given the limited assets and operational scale; assess any contracts or revenue streams underpinning the company’s activities.
• Clarify the reason for the decline from positive to negative net assets within a short period and check for any contingent liabilities or off-balance sheet obligations.
• Confirm no recent or pending insolvency proceedings or director misconduct given the company’s financial position.