SCA INVEST LTD

Executive Summary

SCA INVEST LTD is currently in a distressed financial position with negative net assets and significant liquidity shortfalls despite holding substantial investment properties. While regulatory compliance appears current, the company’s solvency and cash flow risks are material and warrant close monitoring and further financial review. Immediate attention to refinancing and working capital management is advisable.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

SCA INVEST LTD - Analysis Report

Company Number: 13917482

Analysis Date: 2025-07-29 20:41 UTC

  1. Risk Rating: HIGH
    The company exhibits significant solvency and liquidity concerns as evidenced by persistent negative net assets, substantial current liabilities exceeding current assets, and minimal cash reserves. The negative shareholders’ funds and net liabilities indicate financial distress despite the presence of investment properties.

  2. Key Concerns:

  • Negative net assets (£-2,371 as of 29 February 2024) reflect an insolvent balance sheet position, raising doubts on the company's ability to meet long-term obligations.
  • Severe working capital deficiency with net current liabilities of £319,101 and only £6 cash on hand signals acute liquidity risk and potential cash flow difficulties.
  • Heavy reliance on long-term bank loans (£746,495) with no apparent equity buffer exposes the company to refinancing risk and creditor pressure.
  1. Positive Indicators:
  • Ownership and operational control are consolidated under a single director and majority shareholder, which may facilitate swift decision-making.
  • The company holds substantial investment properties valued around £1.06 million, providing a tangible asset base that could support restructuring or refinancing efforts.
  • No overdue filings or compliance issues, indicating good regulatory adherence and governance discipline to date.
  1. Due Diligence Notes:
  • Assess the terms and maturity profile of the bank loans and creditor agreements to understand refinancing or repayment risks.
  • Investigate the valuation and liquidity of the investment properties, including market conditions affecting their realizable value.
  • Review cash flow forecasts, debtor quality, and collection practices given the high debtor balances relative to cash.
  • Confirm whether any contingent liabilities or off-balance sheet obligations exist that could exacerbate financial risks.
  • Evaluate director plans for addressing the negative equity and working capital shortfall, including potential capital injections or asset disposals.

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