VIONIS PROPERTIES LTD

Executive Summary

Vionis Properties Ltd exhibits significant solvency and liquidity risks, characterized by sustained negative net assets and heavy reliance on debt financing without operational revenue or workforce. While regulatory compliance and asset holdings are positives, the company’s financial position raises concerns about its ability to meet obligations and maintain operational stability. Further due diligence on loan terms and asset realizability is advisable before investment consideration.

VIONIS PROPERTIES LTD - Analysis Report

Company Number: 13885229

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent net liabilities and negative shareholders' funds, with cash balances insufficient to cover even minimal short-term obligations. Reliance on director loans and bank loans for funding, combined with no employees and minimal current assets, indicates elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities increased from approximately -£33k at incorporation to -£38k in the latest financial year, reflecting accumulated losses or undercapitalization.
• Liquidity Deficiency: Cash on hand is minimal (£869 in 2025) while current liabilities are low but there is a significant portion of long-term creditors (£209k). The lack of working capital buffer is concerning for meeting short-term obligations.
• Dependence on External Financing: Long-term liabilities comprise bank loans (£120k) and director loans (£89k), indicating reliance on debt funding with no evidence of income or operational cash flow to service these debts.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, showing no regulatory compliance issues.
• Tangible Fixed Assets: The company holds land and buildings valued at approximately £170k, which may provide some asset backing for liabilities.
• Single Director with Financial Expertise: The sole director is a finance manager, which may benefit governance and financial oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loan and director loans, including repayment schedules, interest rates, and any security interests.
• Review the company’s business plan or revenue streams to assess operational sustainability given zero employees and ongoing losses.
• Clarify the valuation and marketability of the tangible fixed assets to determine their realizable value.
• Assess whether the director’s financial management expertise translates into effective risk mitigation strategies or if further financial support is anticipated.
• Confirm no hidden contingent liabilities or pending legal issues that may exacerbate financial risk.