SHERBORNE PROPERTIES LIMITED

Executive Summary

Sherborne Properties Limited presents a low risk profile based on its strong asset base, positive liquidity, and compliance with filing obligations. While the company’s investment property underpins its net asset value, the recent elimination of the fair value reserve warrants further examination. Operational sustainability and management capability should be reviewed to fully ascertain long-term viability.

SHERBORNE PROPERTIES LIMITED - Analysis Report

Company Number: 13168128

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: LOW
   Sherborne Properties Limited demonstrates strong solvency with net assets exceeding £1.1 million as at 31 March 2024. The company holds significant investment property valued at £1 million and exhibits healthy working capital with current assets significantly higher than current liabilities. There are no overdue filings or indications of operational distress.

2. Key Concerns:

• The company has no employees and limited operational details, which may imply dependency on directors or external contractors; operational sustainability should be confirmed.
• The fair value reserve was fully written down in the latest year, indicating a revaluation loss on investment property that may affect future profitability or borrowing capacity.
• The directors include individuals with non-business occupations (housewife, retired, school administrator), which may raise questions about management expertise in property trading.

3. Positive Indicators:

• Strong net asset base and positive net current assets (£135k), reflecting good short-term liquidity.
• Cash balances have increased from £121k to £142k year-on-year, suggesting adequate cash flow management.
• No overdue statutory filings, confirming regulatory compliance and governance discipline.
• Sole shareholder control by Lewgee Ltd with 75-100% ownership provides clear control and accountability.

4. Due Diligence Notes:

• Review detailed income statement and cash flow data (not filed publicly) to assess revenue generation, profitability, and cash flow sustainability.
• Investigate the nature, location, and market conditions of the investment property to understand valuation risks and potential for future income or capital gain.
• Confirm whether any related party transactions exist given the familial appointments and ownership structure.
• Assess director expertise and governance arrangements to ensure effective operational oversight.