UTOPIA PROPERTY CORNWALL LIMITED
Executive Summary
Utopia Property Cornwall Limited shows significant liquidity and solvency concerns with a large negative working capital position and rapidly increasing short-term liabilities. Although regulatory filings are current and fixed asset investment has grown, the micro-entity status and limited operational data restrict confidence in business sustainability. Further financial and operational due diligence is recommended before considering investment exposure.
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This analysis is opinion only and should not be interpreted as financial advice.
UTOPIA PROPERTY CORNWALL LIMITED - Analysis Report
Risk Rating: HIGH
The company's financial position exhibits significant solvency and liquidity risks, primarily due to persistent and increasing net current liabilities substantially exceeding current assets. The micro-entity scale and absence of audit further limit financial transparency.Key Concerns:
- Severe Net Current Liability Deficit: As of 31 October 2024, net current liabilities total approximately £247k against current assets of only £3.2k, highlighting acute short-term liquidity pressure.
- Rising Short-Term Creditors: Creditors due within one year have increased from £73.9k in 2023 to £250.1k in 2024, suggesting escalating reliance on short-term financing or unpaid obligations.
- Limited Operational Scale and Revenue Visibility: The company employs only 2 people and is categorized as a micro-entity, with no detailed revenue or cash flow disclosed, impeding assessment of business sustainability.
- Positive Indicators:
- Growth in Fixed Assets: The company increased fixed assets from about £72k to £256k in the latest year, potentially indicating investment in property or equipment that may support future operations or asset-backed financing.
- No Overdue Filings: Both annual accounts and confirmation statements are up to date, demonstrating regulatory compliance and governance diligence.
- Experienced Directors with Relevant Occupations: The current directors have technical backgrounds (electricians), which may align with the property/real estate sector activities.
- Due Diligence Notes:
- Obtain detailed management accounts or cash flow statements to clarify operational cash generation and short-term liquidity management.
- Review the nature and terms of current liabilities to assess risk of creditor action or refinancing needs.
- Investigate the business model and revenue streams to evaluate sustainability and growth prospects.
- Confirm the valuation and liquidity of fixed assets to understand their potential as collateral or saleable assets.
- Assess the background and financial standing of the controlling shareholders and directors for potential support or risk factors.
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