SMITH & SONS PROPERTY INVESTMENTS LTD

Executive Summary

Smith & Sons Property Investments Ltd demonstrates significant financial distress characterized by negative net assets and large liquidity shortfalls. While compliance with filing requirements and asset growth are positives, the company’s current financial position raises substantial solvency and operational sustainability concerns that require further investigation before considering investment.

SMITH & SONS PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 14218362

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected by persistent negative net assets and large net current liabilities exceeding current assets by a substantial margin.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities increased from £1,749 (2023) to £1,225 (2024), indicating erosion of equity and potential insolvency risk.
• Severe Working Capital Deficit: Net current liabilities of £223,480 (2024) versus current assets of only £1,200 suggest acute liquidity constraints, risking inability to meet short-term obligations.
• No Employees or Operational Scale: Zero employees reported and limited asset base imply minimal operational activity or scale, raising concerns over business sustainability and revenue generation.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance discipline.
• Asset Growth: Fixed assets increased from £139,377 to £222,755 year-on-year, suggesting investment or acquisition of property assets consistent with its industry classification.
• Stable Directorship and Ownership: Directors and PSCs remain consistent since incorporation, which may reflect stable control and decision-making.

4. Due Diligence Notes:

• Examine Nature and Valuation of Fixed Assets: Clarify the composition of fixed assets and whether they are encumbered or impaired, given the negative net asset position.
• Review Cash Flow and Funding Arrangements: Investigate how the company finances its working capital deficit and whether there are related party loans or external funding sources.
• Assess Business Model and Revenue Streams: With no employees and minimal current assets, understand how the company operates and generates income to cover liabilities and sustain operations.