SCALPEL PROPERTY VENTURES LTD

Executive Summary

Scalpel Property Ventures Ltd demonstrates high solvency and liquidity risks with negative equity and substantial debt exceeding current assets. The company holds investment properties as its primary assets and complies with filing requirements, but its limited operating history and reliance on directors’ loans warrant caution. Comprehensive due diligence on loan arrangements, asset valuations, and cash flow forecasts is recommended to better understand the company’s financial viability.

SCALPEL PROPERTY VENTURES LTD - Analysis Report

Company Number: 15112386

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by negative net assets and net current liabilities. As a recently incorporated entity with a short trading history and considerable debt obligations exceeding current assets, it faces substantial financial strain.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities of approximately £34,000 indicate it is currently insolvent on a balance sheet basis.
• Substantial Debt and Current Liabilities: Current liabilities (£186,889) and long-term bank loans (£224,515) exceed current assets (£27,151) by a large margin, resulting in a net current liability position of nearly £160,000, highlighting liquidity challenges.
• Concentration of Control and Limited Operating History: The two directors/shareholders each hold 25-50% of shares and voting rights. Given the company’s incorporation in September 2023 and first accounting period ending September 2024, there is limited operating history to assess sustainability or performance trends.

3. Positive Indicators:

• Investment Property Asset Base: Fixed assets primarily comprise investment properties valued at £350,261, which are secured against bank loans, providing some asset backing for creditors.
• No Overdue Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance.
• Directors Acknowledge Going Concern: The directors have not identified material uncertainties regarding the company’s ability to continue as a going concern, which may reflect confidence in future cash flows or refinancing plans.

4. Due Diligence Notes:

• Review Bank Loan Terms and Security Arrangements: Examine covenants, repayment schedules, and the extent of security held against the investment properties.
• Assess Directors’ Loans and Related Party Transactions: Current liabilities include significant directors’ loan accounts (£186,889), which require scrutiny for repayment terms and potential conflicts of interest.
• Verify Investment Property Valuation Methodology: Confirm the valuation approach and market comparables underpinning the £350,261 figure to assess asset reliability.
• Obtain Cash Flow Projections and Business Plan: Evaluate forecasts supporting the going concern assertion, including rental income assumptions and capital expenditure plans.
• Investigate the Background and Expertise of Directors: Particularly given their professional backgrounds (doctor and entrepreneur) relative to property investment operations.

Executive Summary
Scalpel Property Ventures Ltd, a recently established property investment company, currently exhibits high financial risk due to negative net assets and significant liabilities exceeding short-term assets. While the company holds substantial investment property assets and maintains regulatory compliance, its liquidity position and reliance on directors’ loans present concerns. Further detailed review of loan terms, asset valuations, and operational projections is essential to assess the company’s financial sustainability.