SPK INVESTMENT PROPERTIES LIMITED

Executive Summary

SPK Investment Properties Limited exhibits high financial risk due to ongoing negative working capital and minimal net asset value despite a sizeable fixed asset base. While regulatory compliance is current and management stable, liquidity and solvency concerns warrant careful further investigation before investment consideration. The company’s ability to meet short-term obligations and sustain operations remains uncertain without additional financial detail.

SPK INVESTMENT PROPERTIES LIMITED - Analysis Report

Company Number: 13256188

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets (working capital deficit) and very low net assets relative to its fixed asset base, indicating solvency and liquidity risks. The current liabilities are substantial compared to current assets, and the net assets have declined from the prior year.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£322k) significantly exceed current assets (£19k), leading to a net working capital deficit of approximately £162k, which may impair the company’s ability to meet short-term obligations.
• Solvency Pressure: Despite substantial fixed assets (£493k), the net asset value is only £7k, down from £11k the previous year, suggesting high leverage and potential overreliance on long-term creditors.
• Operational Sustainability: No profit and loss figures are provided, but the minimal shareholders’ funds and continued working capital deficits raise concerns about the company’s ability to generate sustainable earnings or maintain operations without external support.

3. Positive Indicators:

• Timely Compliance: The company is up to date with filings for both accounts and confirmation statements, indicating good regulatory compliance.
• Stable Management: The three directors have been in place since incorporation, providing continuity of governance.
• Asset Base: The company holds significant fixed assets, presumably property-related given the SIC code, which could provide collateral or recovery value.

4. Due Diligence Notes:

• Obtain and review full profit and loss accounts to assess operational profitability and cash flows.
• Investigate the nature and terms of the current and long-term liabilities to understand creditor exposure and repayment obligations.
• Verify the valuation and liquidity of fixed assets to assess their realistic contribution to solvency.
• Explore any related-party transactions or director loans that may affect financial stability.
• Confirm whether any contingent liabilities or off-balance sheet exposures exist.