VEALE PROPERTY LTD

Executive Summary

Veale Property Ltd reflects a small, property management-focused enterprise with improving equity and appreciating investment assets. However, persistent negative working capital and reliance on director loans introduce liquidity and solvency risks that should be carefully monitored. The company maintains good regulatory standing with timely filings, supporting operational governance.

VEALE PROPERTY LTD - Analysis Report

Company Number: 13348028

Analysis Date: 2025-07-20 17:27 UTC

Risk Rating: MEDIUM
Veale Property Ltd demonstrates moderate financial stability, supported by modest net assets and positive equity growth. However, persistent negative net current assets and reliance on director loans present liquidity and solvency concerns that warrant caution.

Key Concerns:

1. Negative Net Current Assets: The company consistently shows a net current liability position (-£32,422 in 2024), indicating that current liabilities exceed current assets, which may constrain short-term liquidity and operational flexibility.
2. Significant Director Loans: Over £33,500 of current liabilities are director loan accounts, suggesting dependence on related-party financing. This may raise concerns about sustainability if such support is withdrawn.
3. Limited Share Capital: The issued share capital is nominal (£2), implying limited equity buffer to absorb financial shocks or losses.

Positive Indicators:

1. Increasing Net Assets: Net assets have risen from a negative £3,447 in 2021 to £15,213 in 2024, reflecting profitable operations or asset revaluation gains.
2. Investment Property Appreciation: The company’s investment property increased in value from £100,000 to £115,000 year-on-year, supporting asset quality and potential income generation.
3. Timely Compliance: No overdue filings for accounts or confirmation statements indicate good regulatory compliance and governance practices to date.

Due Diligence Notes:

• Investigate the terms and sustainability of director loan accounts, including repayment schedules, interest obligations, and potential risks if director support ceases.
• Assess cash flow statements to understand operational cash generation and whether the negative working capital is managed without distress.
• Review any contingent liabilities or contractual obligations related to the investment property, including maintenance and repair commitments that may affect future cash requirements.
• Confirm the valuation methodology and independence of the investment property valuation to validate asset quality.