VIRGIL ESTATES LTD

Executive Summary

Virgil Estates Ltd is a micro private company with significant liquidity and solvency challenges evidenced by large net current liabilities and minimal net assets. While the company maintains compliance with filings and holds sizeable fixed assets, the absence of employees and limited current assets pose operational sustainability concerns. Further due diligence on asset quality and cash flow is necessary to clarify financial resilience.

VIRGIL ESTATES LTD - Analysis Report

Company Number: 13874261

Analysis Date: 2025-07-29 15:03 UTC

1. Risk Rating: HIGH
   The financial data reveals persistent negative net current assets and previous net liabilities, indicating a strained liquidity position and potential solvency concerns for Virgil Estates Ltd. Although net assets have marginally improved in the latest year, the company’s micro size and lack of operational employees suggest limited business activity and financial resilience.

2. Key Concerns:

• Liquidity Risk: The company shows significant net current liabilities (£321,983 as of 31 January 2024), implying it potentially lacks sufficient short-term assets to cover immediate obligations.
• Solvency Risk: The balance sheet shows very thin net assets (£6,509), up from a negative net asset position the prior year, which raises concerns about long-term financial stability and capitalization.
• Operational Viability: The company reports zero employees and minimal current assets (£3,892), suggesting limited ongoing operational activity or revenue generation, which could impair sustainability.

3. Positive Indicators:

• Fixed Asset Base: The company holds substantial fixed assets valued at £330,341, which might represent property or long-term investments that could support operations or collateralize financing.
• Compliance: There are no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and governance discipline to date.
• Ownership and Control: A single director and sole owner controlling 75-100% of shares provides clear decision-making authority with no evident governance conflicts.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets to assess their liquidity and realistic recoverable value.
• Review cash flow statements or management accounts, if available, for insights into operational cash generation and timing of creditor payments.
• Clarify the business model and revenue streams given the absence of employees and micro entity status.
• Confirm whether there are any contingent liabilities or related-party transactions not disclosed in the summary data.
• Assess director background and track record for management capability and risk tolerance.