SUN STREET PROPERTIES LIMITED

Executive Summary

Sun Street Properties Limited shows high financial risk driven by persistent net liabilities and significant working capital deficits, despite holding substantial fixed assets. The company complies with filing requirements and has a clear ownership structure, but liquidity pressures and debt obligations pose material concerns. Further due diligence on asset quality, debt terms, and cash flow plans is essential before investment consideration.

SUN STREET PROPERTIES LIMITED - Analysis Report

Company Number: 14357043

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by persistent net liabilities and extremely negative net current assets. The financial structure suggests ongoing funding challenges that may impair its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £14,850 as of the latest accounts, an improvement from prior periods but still indicating insolvency in accounting terms.
• Severe Working Capital Deficit: Net current assets are highly negative (£-131,927), with current liabilities vastly exceeding current assets, raising red flags about liquidity and short-term cash flow.
• High Long-Term Debt Burden: Creditors due after one year total £382,923, a sizeable obligation relative to the company's asset base and equity, increasing financial leverage and risk.

3. Positive Indicators:

• Stable Fixed Asset Base: The company holds £500,000 in fixed assets consistently over the three reported years, possibly real estate assets aligned with its business activity, which could support refinancing or sale if needed.
• No Overdue Filings: The company is current on statutory accounts and confirmation statements, indicating regulatory compliance and governance attention.
• Clear Ownership Structure: Two directors jointly control the company with transparent shareholdings and voting rights, which may facilitate decisive management actions.

4. Due Diligence Notes:

• Nature and Marketability of Fixed Assets: Verify the valuation and liquidity of the £500,000 fixed assets, including any encumbrances or restrictions, to assess realizable value.
• Debt Terms and Covenants: Examine the composition, maturity, and conditions of the substantial creditors both short and long term to understand refinancing risk or potential defaults.
• Cash Flow Projections and Funding Plans: Obtain management forecasts and plans to address working capital deficits and net liabilities, including potential capital injections or asset disposals.
• Related Party Transactions: Investigate whether any debts or assets relate to related parties or directors, as this could influence financial stability.
• Business Model Sustainability: Given zero employees and micro-entity status, clarify operational activities and revenue streams supporting ongoing viability.