SAPEDA LTD

Executive Summary

SAPEDA LTD operates in real estate leasing with a stable but small operational footprint and complies with filing obligations. The company shows a persistent liquidity gap due to net current liabilities exceeding current assets, which presents a medium risk level requiring closer scrutiny of short-term financial management. The gradual increase in net assets is a positive sign but insufficient to offset liquidity concerns without further information.

SAPEDA LTD - Analysis Report

Company Number: SC689273

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   The company exhibits a modest net asset base relative to its current liabilities, resulting in persistent net current liabilities over recent years. While it remains solvent on a net assets basis, the liquidity position signals potential short-term funding pressure.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities (negative net current assets), indicating current liabilities exceed current assets by approximately £259k as of March 2024, which may constrain the ability to meet short-term obligations without additional financing.
• Limited Equity Base: Shareholders’ funds are relatively low at £39k, showing limited capital buffer to absorb losses or financial shocks.
• Dependence on Fixed Assets: Fixed assets constitute a large portion of total assets (£298k), but these may not be quickly liquidated to meet immediate liabilities, exacerbating liquidity risk.

3. Positive Indicators:

• Compliance and Filing: The company’s accounts and confirmation statements are up to date and not overdue, demonstrating adherence to regulatory requirements.
• Stable Employment: The company maintains a small but stable workforce of 2 employees, consistent across the reported periods, suggesting steady operational scale.
• Growth in Net Assets: Net assets increased from £9.5k in 2021 to £39.1k in 2024, indicating gradual accumulation of equity and possibly improved profitability or asset appreciation.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand if these include short-term borrowings or trade payables and the company’s strategy to manage these obligations.
• Review cash flow statements and bank balances (not included here) to assess liquidity management and operational cash generation.
• Assess the valuation and liquidity of fixed assets to confirm if they can support refinancing or liquidation if needed.
• Examine related party transactions or intercompany balances since directors and significant controllers share surnames, indicating possible family involvement.
• Confirm any contingent liabilities or off-balance-sheet commitments that might impact financial stability.