SULACO PROPERTY SW LTD

Executive Summary

SULACO PROPERTY SW LTD demonstrates significant financial stress characterized by negative equity and a heavy debt burden, raising concerns over its solvency and liquidity. Despite compliance with filing requirements and stable fixed assets, the company’s capacity to meet its liabilities and sustain operations is uncertain without further investigation into its debt obligations and cash flow position. Investors should conduct detailed due diligence on its debt structure and operational viability before proceeding.

SULACO PROPERTY SW LTD - Analysis Report

Company Number: 12885877

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

1. Risk Rating: HIGH
   The company exhibits a high solvency risk due to negative net assets and significant liabilities exceeding its assets. The balance sheet shows net liabilities of -£20,664 as of the latest financial year, indicating the company’s obligations exceed its resources.

2. Key Concerns:

• Negative Equity: Shareholders’ funds have deteriorated from £1,461 in 2020 to -£20,664 in 2024, signaling cumulative losses or write-downs eroding capital.
• High Long-term Liabilities: Creditors falling due after more than one year are substantial (£483,750), outstripping total assets less current liabilities (£463,932), raising concerns about the ability to service or refinance debt.
• Very Low Current Assets vs. Current Liabilities: Current assets are minimal (£5,134) compared to current liabilities (£483,750), leading to a negative working capital position and potential liquidity constraints.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets have remained constant at £679,731, suggesting the company maintains tangible asset backing.
• Compliance and Timely Filing: The company is up to date with accounts and confirmation statement filings, indicating no immediate regulatory compliance issues.
• Single Director and PSC: Clear control by Mr Jason Corey Bowden (75-100% ownership and voting rights) may facilitate swift decision-making.

4. Due Diligence Notes:

• Examine the nature and terms of the long-term creditors (£483,750), including repayment schedules, interest rates, and any covenants that may pose refinancing or default risks.
• Investigate the cause of the negative net assets and whether losses are operational or due to asset impairments or revaluations.
• Review cash flow statements (not provided) to assess operational liquidity and the ability to meet short-term obligations given the low current assets.
• Confirm if any related party transactions exist given the sole director’s control which may impact financial position.
• Understand the business model and revenue generation given the company’s SIC codes related to real estate management and dealing, and whether current financial performance is sustainable.