STALEYS PROPERTY LIMITED

Executive Summary

STALEYS PROPERTY LIMITED demonstrates a high financial risk profile characterized by negative working capital, significant long-term liabilities, and minimal cash reserves. While the company holds substantial tangible assets and remains compliant with filings, the current financial structure raises concerns about liquidity and solvency. Further investigation into debt terms, cash flow, and operational sustainability is essential before considering investment.

STALEYS PROPERTY LIMITED - Analysis Report

Company Number: 15125589

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns, with net current liabilities exceeding £98,000 and minimal cash reserves. The equity base is very low relative to total liabilities, indicating a fragile financial position.

2. Key Concerns:

• Negative Working Capital: Net current assets are negative (~£98,000), meaning current liabilities vastly exceed current assets, which risks short-term liquidity and operational continuity.
• High Long-Term Liabilities: Finance lease obligations after one year total £251,225, almost equal to fixed assets value, suggesting high leverage and potential difficulty in servicing debt.
• Minimal Cash Reserves: Cash at bank is only £5,581, insufficient to cover immediate obligations, raising red flags on the company’s ability to meet short-term commitments without additional financing.

3. Positive Indicators:

• Tangible Fixed Assets: The company owns tangible fixed assets valued at £351,555 (land and buildings), which could provide collateral for financing.
• Current Filing Compliance: All statutory filings including accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Clear Ownership Structure: Two individuals hold significant control, with one director currently active, which may allow for streamlined decision-making.

4. Due Diligence Notes:

• Debt Structure and Terms: Investigate the nature, interest rates, and repayment schedules of the £251,225 finance lease obligations to assess refinancing risk and covenant compliance.
• Cash Flow Projections: Obtain detailed cash flow forecasts to determine how short-term liabilities will be met given the negative working capital and limited cash.
• Operational Model and Revenue: Clarify the company’s revenue model and turnover figures as these are not provided; understand how income supports debt servicing and operations.
• Director Changes: Review the impact of the recent director resignation on governance and operational stability.
• Valuation of Fixed Assets: Confirm the recoverability and market value of the tangible fixed assets, especially since they constitute the majority of asset value.