SCG PROPERTY MAINTENANCE LTD

Executive Summary

SCG Property Maintenance Ltd is a micro private limited company currently insolvent with negative net assets and significant net current liabilities. The company’s survival relies heavily on director and creditor support, raising high solvency and liquidity risks. However, it remains compliant with filing obligations and operationally active, warranting further investigation into its cash flow and support arrangements before investment consideration.

SCG PROPERTY MAINTENANCE LTD - Analysis Report

Company Number: 13643515

Analysis Date: 2025-07-29 18:45 UTC

1. Risk Rating: HIGH
   The company is currently insolvent with negative shareholders' funds of £851 as at 30 September 2023, worsening from a positive £26 the prior year. Net current liabilities have increased significantly, indicating inability to cover short-term debts with current assets. Reliance on director support to continue operations is explicitly noted.

2. Key Concerns:

• Solvency Risk: The balance sheet shows net liabilities and negative shareholders’ funds, indicating insolvency and potential inability to meet obligations without external support.
• Liquidity Issues: Current liabilities of £1,227 exceed current assets of £153, resulting in a net current liability position of £1,074, a significant liquidity strain.
• Dependence on Director Support: The accounts note that the company’s going concern status depends on ongoing support from its director and creditors, which poses risk if such support ceases.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, showing compliance with filing requirements.
• Active Status: The company is active and operational with a single employee (the director), suggesting some ongoing business activity.
• Micro Entity Filing: The company benefits from simplified reporting requirements, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and extent of director and creditor support—e.g., loans or guarantees—to understand sustainability of operations.
• Review cash flow statements or management accounts (if available) to assess current liquidity and operational cash generation.
• Confirm whether there are any contingent liabilities or overdue payments to suppliers that could exacerbate financial stress.
• Understand business model and revenue streams in the property maintenance sector under SIC codes 82990/43390 to evaluate operational viability.
• Verify that no director disqualifications or regulatory compliance issues exist beyond filings.