SOARES &SOURCE PROPERTY LTD

Executive Summary

SOARES & SOURCE PROPERTY LTD exhibits significant financial stress with negative net assets and insufficient liquidity to cover short-term liabilities. Although the company holds a tangible asset in the form of a freehold property, its reliance on director support and apparent limited operational activity raise concerns about ongoing viability. Up-to-date compliance filings and clear ownership provide some reassurance, but detailed review of liabilities and cash flow is recommended before investment.

SOARES &SOURCE PROPERTY LTD - Analysis Report

Company Number: 14365291

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-12,647) and substantial long-term liabilities exceeding total assets, indicating solvency concerns. Current liabilities (£45,000) exceed current assets (£3,069), suggesting liquidity risk. The company relies entirely on director support for going concern, pointing to operational vulnerability.

2. Key Concerns:

• Solvency Risk: Net liabilities position with total liabilities exceeding assets by a material amount, raising doubts about the company’s ability to meet obligations in the longer term.
• Liquidity Concerns: Current assets are minimal relative to short-term creditors, leading to negative net current assets (£-41,931), indicating potential cash flow difficulties.
• Operational Stability: The company is newly incorporated (2022), with only one employee, heavily reliant on director support without evidence of diversified income or financial resilience.

3. Positive Indicators:

• Compliance: No overdue filings; accounts and confirmation statements are up to date with Companies House.
• Asset Base: Ownership of a freehold property valued at £105,762, which forms the bulk of company assets and may provide collateral value.
• Transparent Control: Clear ownership and control by a single director with 75-100% shareholding and voting rights, reducing governance complexity.

4. Due Diligence Notes:

• Investigate the nature of the £76,478 long-term liabilities, including terms, interest rates, and creditor identity, to understand financial obligations and refinancing risks.
• Review cash flow projections and director support commitments to assess going concern assumptions and operational sustainability.
• Examine income generation and business plan given the company’s micro-entity classification and minimal current assets, to confirm viability beyond asset holding.