SRUIGHLEA ESTATES LTD

Executive Summary

SRUIGHLEA ESTATES LTD is a newly formed micro-entity operating in real estate letting, showing positive net assets but significant net current liabilities that may pressure liquidity. The company is compliant with filing obligations and benefits from audit exemption; however, further due diligence on current liabilities and cash flow sustainability is recommended before investment. Overall, the risk is medium due to limited operating history and liquidity concerns balanced against an asset base and regulatory compliance.

SRUIGHLEA ESTATES LTD - Analysis Report

Company Number: SC781299

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: MEDIUM
   The company shows early-stage financials typical of a recently incorporated micro-entity, with positive net assets but significant current liabilities exceeding current assets, indicating potential liquidity stress despite overall solvency.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£261,500) substantially exceed current assets (£20,851), resulting in a net current liability position of £239,540, which could indicate short-term liquidity challenges.
• Start-Up Phase with Limited Operating History: Incorporated in September 2023, the company has less than one full year of financial data, restricting the ability to assess operational stability or cash flow consistency.
• Concentration of Control and Management: Both directors hold significant control (25-50% share and voting rights each) and also serve as PSCs, which may raise governance and decision-making risk if not balanced with wider oversight.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity concerns, net assets stand at £56,764 supported by fixed assets of £297,634, suggesting some capital backing and asset base.
• Compliance with Filings: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance with timely filings.
• Exemption from Audit: The company benefits from micro-entity audit exemption, which is appropriate given its size and turnover, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities to understand whether these are short-term borrowings, trade creditors, or intercompany loans and their repayment terms.
• Clarify the cash flow situation and funding sources to cover the net current liabilities and ongoing operational expenses.
• Review the business model and contracts underpinning the real estate holdings (SIC 68209) to assess sustainability and revenue generation potential.
• Confirm the directors’ plans for capital injection or refinancing to mitigate the liquidity gap.
• Assess any related party transactions or potential conflicts given the concentrated ownership and directorship.