SKYLINE PROPERTY DEVELOPMENT LTD

Executive Summary

Skyline Property Development Ltd shows significant liquidity and solvency risks due to negative working capital and high debt levels relative to minimal equity. While the company possesses valuable investment property and remains compliant with statutory filings, its short operating history and reliance on director funding raise concerns. Further investigation into debt arrangements and asset realizability is essential for a comprehensive risk assessment.

SKYLINE PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 14470642

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: HIGH
   The company exhibits a weak liquidity position with substantially negative net current assets (£-92,144) and significant creditor obligations (£97,219 due within one year and £87,010 due after one year). Net assets are minimal (£468), indicating very limited equity buffer. The high level of related party debt (director loan of £75,580) and bank borrowings secured against property heighten financial risk.

2. Key Concerns:

• Liquidity Strain: Negative working capital and current liabilities nearly 20 times the cash balance suggest difficulty meeting short-term obligations.
• High Leverage and Debt Concentration: Over £162k total liabilities against net assets of only £468, with major creditor being a director loan interest-free and repayable on demand, indicating reliance on insider funding.
• Limited Operational History and Scale: Incorporated in late 2022 with only one full year of accounts; small asset base and just 2 employees may limit operational resilience and business diversification.

3. Positive Indicators:

• Asset Backing: The company holds investment property valued at £179,155, which provides tangible collateral and potential for income or sale proceeds.
• Compliance Status: No overdue accounts or confirmation statements, indicating regulatory compliance and governance adherence to filing requirements.
• Clear Ownership and Control: Single PSC with full ownership and control may streamline decision-making and reduce governance complexity.

4. Due Diligence Notes:

• Investigate terms and repayment prospects of the director loan and bank borrowings, including any potential refinancing or restructuring plans.
• Review the valuation basis and marketability of the investment property to assess potential liquidity realization.
• Examine cash flow forecasts or budgets to understand how the company plans to meet current liabilities and fund operations going forward.
• Assess any contingent liabilities or off-balance-sheet exposures not disclosed in the accounts.
• Consider background and creditworthiness of the sole PSC and director to evaluate ongoing support capacity.