SYZO NEWQUAY LIMITED

Executive Summary

SYZO NEWQUAY LIMITED operates in a highly leveraged real estate sector with persistent negative equity and a substantial working capital deficit, highlighting elevated solvency and liquidity risks. While the company benefits from appreciating property assets and an experienced management team, significant financial obligations and cash flow pressures warrant cautious appraisal. Further detailed due diligence is recommended to clarify debt servicing capabilities and asset quality.

SYZO NEWQUAY LIMITED - Analysis Report

Company Number: 13340935

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent negative net assets and substantial current liabilities vastly exceeding current assets. The reliance on secured bank loans and high gearing levels further elevate financial risk.

2. Key Concerns:

• Negative shareholders’ funds: Net liabilities of £24,277 as of April 2024, though improved from prior years, remain a red flag for solvency.
• Working capital deficit: Current liabilities (£694,797) far exceed current assets (£38,224), resulting in a negative net current asset position of £656,573, indicating potential liquidity stress.
• Heavy debt burden: Long-term secured borrowings of £1,133,756 against investment properties suggest high leverage and ongoing interest/service obligations that could strain cash flows.

3. Positive Indicators:

• Investment property portfolio revalued upwards by £58,252 in the latest year, indicating potential asset value growth and collateral backing.
• Stable fixed asset base focused on real estate, with clear accounting policies and no audit exemption issues, reflecting compliance with statutory requirements.
• Experienced board with diverse backgrounds including property development and investment, which may aid strategic management of assets and liabilities.

4. Due Diligence Notes:

• Investigate the terms and repayment schedule of secured bank loans to assess refinancing risks and covenant compliance.
• Review cash flow forecasts and rental income stability to evaluate ongoing operational viability and ability to meet short-term liabilities.
• Confirm the valuation methodology and liquidity of investment properties to verify asset realizability in distressed scenarios.
• Examine any off-balance sheet liabilities or contingent obligations not apparent in the current filings.
• Assess directors' plans for addressing negative equity and working capital deficits, including capital injection or debt restructuring initiatives.