SUKAINA PROPERTIES LIMITED

Executive Summary

Sukaina Properties Limited displays high financial risk primarily due to a significant and growing working capital deficit and heavy reliance on director-related loans. While compliance with filing requirements and increasing equity provide some positive signals, the company’s liquidity position and asset valuation require further scrutiny. Independent verification of investment property values and related party loans is essential to fully understand the company’s operational sustainability and solvency prospects.

SUKAINA PROPERTIES LIMITED - Analysis Report

Company Number: 12893405

Analysis Date: 2025-07-29 13:33 UTC

1. Risk Rating: HIGH

The company’s financial statements reveal significant solvency and liquidity concerns despite being active and compliant with filing requirements. Net current liabilities have increased substantially, and current liabilities exceed current assets by a large margin, indicating potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Severe Working Capital Deficit: Net current liabilities reached approximately £502k as of 30 September 2024, up from £231k the prior year, signaling acute liquidity stress.
• High Related Party Debt: Over £506k owed to a related party (a company controlled by the director), suggesting reliance on director-related financing which may not be sustainable or replicable by external creditors.
• Valuation and Impairment Risk: Investment property value was materially increased to £511k based on director valuation without independent audit or external appraisal, raising questions on asset recoverability and potential overstatement of assets.

3. Positive Indicators:

• Compliance with Filings: All statutory accounts and confirmation statements are up to date and not overdue, indicating regulatory compliance.
• Increasing Shareholders’ Funds: Although small, equity has increased from negative to positive (£9.5k in 2024), demonstrating some retained earnings accumulation.
• Active Director with Significant Control: Clear control and transparency regarding ultimate controlling party and director’s details.

4. Due Diligence Notes:

• Investigate the terms, repayment schedule, and enforceability of the related party loan of £506,860 to assess funding stability.
• Obtain an independent valuation of the investment property to validate the carrying amount and assess impairment risk.
• Review cash flow forecasts and future funding plans to determine how the company intends to remedy the working capital deficit and meet liabilities.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess director’s capacity and commitment to continue providing financial support given the company’s reliance on related party funds.