SYMWAY PROPERTY LTD

Executive Summary

Symway Property Ltd is a recently formed micro-entity with negative equity primarily due to significant long-term liabilities exceeding its asset base. While it maintains regulatory compliance and clear ownership, the financial position raises solvency and liquidity concerns. Detailed investigation into the liability structure and operational plans is essential to assess the company’s viability and investment risk.

SYMWAY PROPERTY LTD - Analysis Report

Company Number: 14958521

Analysis Date: 2025-07-29 21:18 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (-£4,910) and significant long-term liabilities (£100,000) relative to its modest asset base (£83,475 fixed assets). This indicates potential solvency concerns. The company is newly incorporated (2023) with limited operating history and no employees, raising questions about operational stability and cash flow sufficiency.

2. Key Concerns:

• Solvency and Leverage: The company’s total liabilities exceed its assets, resulting in negative equity, which is a red flag for solvency risk.
• Liquidity Constraints: Current assets (£13,415) exceed current liabilities (£1,800), but the large long-term creditor of £100,000 could present cash flow challenges if repayment is due or refinancing is required.
• Operational Viability: No recorded employees and minimal current assets suggest the company may not yet be fully operational or generating revenue. The sustainability of the business model is unclear.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Clear Ownership and Control: Single director and 100% ownership by Zhengping Wei provide clear governance and decision-making authority.
• Micro-entity Status: As a micro-entity, the company benefits from reduced reporting burden, which may be suitable for its size and initial phase.

4. Due Diligence Notes:

• Investigate the nature and terms of the £100,000 long-term liability, including repayment schedule, interest obligations, and creditor identity.
• Review cash flow projections and any underlying contracts or revenue streams supporting the business plan.
• Confirm operational activities since incorporation, including any property holdings or leases, and assess plans for growth or capital injection.
• Verify director’s background and financial capability to support the company if needed.
• Evaluate the accuracy of the reported accounts, as the negative shareholders’ funds may require further scrutiny.