SPIRE PROPERTY GROUP LTD

Executive Summary

Spire Property Group Ltd exhibits high financial risk due to persistent negative net assets and working capital deficits, compounded by significant secured debt. The company remains compliant with filings and holds tangible fixed assets, but liquidity concerns and lack of profitability raise questions about its long-term sustainability. Further investigation into cash flow management and recovery plans is recommended for a comprehensive risk assessment.

SPIRE PROPERTY GROUP LTD - Analysis Report

Company Number: SC682602

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected by persistent net current liabilities, negative net assets, and shareholders’ funds. The balance sheet shows recurring losses and a negative equity position, indicating financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities of £8,467 as of the last financial year, worsening from previous years, indicating erosion of equity and potential insolvency risk.
• Working Capital Deficiency: Net current assets are substantially negative (£-56,101), driven by current liabilities exceeding current assets, signaling liquidity constraints and potential difficulties meeting short-term obligations.
• High Secured Debt: The company carries secured bank loans of £86,230, which remain consistent over multiple years, suggesting significant leverage relative to its asset base and cash position.

3. Positive Indicators:

• Stable Fixed Asset Base: Property, plant, and equipment assets have increased slightly and remain stable around £133,864, which may represent underlying tangible asset value that could provide collateral value.
• No Overdue Filings: The company is compliant with statutory filing requirements, including accounts and confirmation statements, which indicates operational governance and adherence to regulatory obligations.
• No Indication of Insolvency Proceedings: The company is active and not under liquidation, administration, or receivership, suggesting it continues to operate despite financial challenges.

4. Due Diligence Notes:

• Cash Flow and Debt Servicing: Detailed cash flow analysis is needed to determine the company’s ability to service the secured bank loan and short-term liabilities given the limited cash reserves (£6,250).
• Asset Valuation Verification: Confirm the valuation and liquidity of fixed assets (£133,864) to assess their realisable value in a distressed scenario.
• Directors’ Strategy and Plans: Investigate management’s plans for improving financial stability, including any restructuring, refinancing, or capital injections. Also, review director backgrounds and any related party transactions given both directors are alarm engineers with no apparent real estate expertise.

Executive Summary:
Spire Property Group Ltd shows clear signs of financial distress, with ongoing negative net assets and working capital deficits indicating solvency and liquidity risks. While the company maintains compliance with filings and holds tangible assets, the high secured debt level and negative equity position highlight significant investor concerns. Further due diligence on cash flow, asset valuations, and management’s recovery strategy is essential to fully assess operational viability.