STRATSMORE DEVELOPMENTS LIMITED

Executive Summary

Stratsmore Developments Limited is an active micro-entity operating in real estate development with current filings up to date. However, its minimal equity and high level of liabilities relative to current assets suggest potential solvency and liquidity risks. Further investigation into its long-term debt structure and cash flow is recommended to assess financial stability and operational sustainability.

STRATSMORE DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13030684

Analysis Date: 2025-07-20 18:48 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a very low net asset base (£300) despite having current assets and liabilities roughly balancing at around £419k. The liabilities after one year are almost equal to current assets, indicating heavy gearing or reliance on long-term creditors. While filings are up to date, the minimal equity and tight working capital position suggest potential solvency or liquidity pressure if cash inflows are disrupted.

2. Key Concerns:

• Extremely low shareholders' funds (£300) relative to assets and liabilities indicates minimal equity buffer and potential solvency risk.
• Current assets closely matched by both current liabilities and long-term creditors, suggesting limited liquidity cushion and possible cash flow constraints.
• Lack of detailed financials typical of micro-entity filings limits insight into profitability, cash flow, and operational stability.

3. Positive Indicators:

• Company is active with no overdue filings, indicating compliance with statutory requirements.
• Increasing current assets from £277.8k in 2022 to £418.9k in 2023 shows growth in asset base.
• Consistent appointment of three directors with relevant occupations may support operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£418,640) to understand financial commitments and repayment risk.
• Obtain management accounts or cash flow statements to evaluate liquidity and operational cash generation.
• Review business model sustainability given the low equity and reliance on creditor funding.
• Confirm absence of director disqualifications or regulatory compliance issues beyond filing status.