SUNNYSIDE PROPCO LIMITED

Executive Summary

SUNNYSIDE PROPCO LIMITED shows moderate financial risk primarily due to liquidity concerns evidenced by negative net current assets and high short-term liabilities relative to current assets. However, the company maintains regulatory compliance and holds fixed assets that provide some financial backing. Further investigation into debt terms and cash flow is recommended to assess ongoing operational viability.

SUNNYSIDE PROPCO LIMITED - Analysis Report

Company Number: 14182990

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder equity, but the significant level of creditors, particularly long-term liabilities, relative to current assets poses a moderate solvency risk. The balance sheet indicates some financial strain despite positive equity.

2. Key Concerns:

• High Creditors vs. Low Current Assets: Current assets (£1,687) are substantially lower than current liabilities (£108,421), indicating potential liquidity issues to meet short-term obligations.
• Negative Net Current Assets: Net current assets are negative (-£106,734), signifying working capital deficits that could impact operational cash flow.
• Volatile Net Assets and Shareholders’ Funds: Net assets moved from a slight negative (-£41 in 2023) to a small positive (£17,999 in 2024), showing some improvement but still at a low absolute level relative to total liabilities.

3. Positive Indicators:

• Fixed Assets Stability: Fixed assets remain consistent at £350,703, suggesting some tangible asset backing the company’s operations.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• No Employees: Zero employees reported, which may imply lower operational overheads, potentially benefiting cash flow management.

4. Due Diligence Notes:

• Review the nature and terms of the £225,970 creditors falling due after more than one year to understand the long-term debt structure and repayment obligations.
• Investigate the company’s cash flow mechanisms given the negative net current assets and low current assets to assess liquidity management in daily operations.
• Obtain more detailed financial performance data (profit and loss, cash flow statements) if available, to evaluate operational sustainability and profitability trends.
• Confirm asset valuations and verify if fixed assets are encumbered or available as security for creditors.