WARREN EDWARD PROPERTIES LTD

Executive Summary

WARREN EDWARD PROPERTIES LTD shows significant solvency and liquidity risk due to a highly leveraged position with negative working capital and minimal equity. While it holds substantial fixed assets that may provide collateral value, the company’s ability to meet short-term liabilities is questionable without additional financing. Compliance with statutory filings is maintained, but operational and cash flow details require further investigation to assess sustainability.

WARREN EDWARD PROPERTIES LTD - Analysis Report

Company Number: 14519020

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: HIGH
   The company exhibits a highly leveraged balance sheet with current liabilities exceeding current assets by a substantial margin (£1,068,996 vs £4,199), resulting in negative net current assets of £1,064,797. Net assets stand at a negligible £61, indicating minimal equity buffer. This raises significant solvency and liquidity concerns.

2. Key Concerns:

• Liquidity Shortfall: The company holds only £3,199 in cash with current liabilities of over £1 million, implying an inability to meet short-term obligations without additional financing or asset liquidation.
• Negative Working Capital: Net current assets are heavily negative, signaling operational cash flow stress and potential reliance on external funding.
• Minimal Equity and Retained Losses: Shareholders’ funds are just £61 with a profit and loss deficit of £939, suggesting very limited financial cushion to absorb losses or adverse events.

3. Positive Indicators:

• Substantial Fixed Assets: Tangible fixed assets valued at approximately £1.06 million (primarily land and buildings) may offer collateral value to support refinancing or debt restructuring efforts.
• Compliance and Filing: The company is current on statutory filings with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Single Director Ownership: The sole director and controlling shareholder (Elaine Smith) has a consistent presence since incorporation, potentially allowing for swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities (£1,068,996) to understand maturity profiles, creditor identities, and potential refinancing risks.
• Assess cash flow forecasts and funding plans to determine how the company intends to meet short-term obligations given limited cash and negative working capital.
• Review the valuation and marketability of the fixed assets to confirm their realizable value under distressed conditions.
• Clarify the company’s business operations and revenue generation status since turnover and profit/loss data are not disclosed, and average employees are zero, raising questions on operational activity.
• Verify any contingent liabilities or off-balance sheet commitments that could exacerbate financial risk.