SILVER BIRCHES PROPERTY LTD

Executive Summary

Silver Birches Property Ltd faces high financial risk primarily due to significant liquidity shortfalls and thin solvency margins. While statutory filings are current and fixed assets provide some support, the company’s negative working capital and small operational scale raise concerns over its ability to meet short-term obligations and sustain operations. Further investigation into asset liquidity, cash flows, and creditor terms is recommended to evaluate financial viability.

SILVER BIRCHES PROPERTY LTD - Analysis Report

Company Number: 13519031

Analysis Date: 2025-07-20 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by consistently negative net current assets and current liabilities far exceeding current assets. The marginal positive net asset position is attributable solely to fixed assets, with very limited working capital to meet short-term obligations.

2. Key Concerns:

• Liquidity Risk: The company shows a persistent and large working capital deficit (net current liabilities over £455k), indicating inability to cover short-term debts from current assets. This is a red flag for cash flow stress.
• Solvency Risk: Although total net assets are positive (£22,783), this is a very thin buffer relative to liabilities, suggesting limited financial resilience to adverse events or downturns.
• Operational Sustainability: The business operates with just one employee and minimal current assets, raising questions on its operational scale and ability to generate sufficient revenue or cash flows to meet liabilities.

3. Positive Indicators:

• The company is up to date with both accounts and confirmation statement filings with no overdue returns, indicating compliance with statutory reporting requirements.
• Fixed assets remain stable around £475k-£478k, suggesting some asset base that could potentially be leveraged or sold if needed.
• The director has maintained involvement since incorporation, and there are no indications of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the fixed assets (£478k) to assess whether they can realistically support the company’s financial obligations or be monetized.
• Review cash flow statements or management accounts (if available) to understand the company’s operational cash generation and how it plans to address the large working capital deficit.
• Examine creditor composition and terms to assess the imminence and risk of default on liabilities.
• Assess the business model and revenue streams given the micro-entity scale and SIC code indicating property letting operations.
• Confirm there are no contingent liabilities or ongoing disputes that could further impair financial position.