XVX PROPERTY LTD

Executive Summary

XVX Property Ltd, a recently incorporated micro-entity in real estate letting, currently exhibits significant solvency and liquidity risks with net liabilities and substantial working capital deficits. While compliance filings are up to date and fixed assets are considerable, the lack of trading history and negative equity present material concerns regarding financial stability and operational sustainability. Further investigation into asset quality and cash flow projections is essential before considering investment.

XVX PROPERTY LTD - Analysis Report

Company Number: 14850166

Analysis Date: 2025-07-29 17:51 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current assets, indicating insolvency risk. Current liabilities significantly exceed current assets, raising liquidity concerns. The company is newly incorporated with minimal operational history, increasing uncertainty.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The balance sheet shows net liabilities of £12,823 and working capital deficit of over £1 million, implying inability to cover short-term obligations.
• Liquidity Risk: Current liabilities (£1,062,445) heavily outweigh current assets (£17,477), suggesting severe cash flow constraints.
• Operational Uncertainty: Incorporated in 2023 with only one employee and no profit & loss account filed, indicating limited trading history and uncertain business viability.

3. Positive Indicators:

• Fixed Assets of £1,033,345: The company holds substantial fixed assets which may provide collateral value or underpin future operations.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance discipline.
• Single Controlling Director/Shareholder: Clear ownership and control structure may facilitate decisive management actions.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the fixed assets to assess their realizable value.
• Obtain detailed cash flow forecasts and trading performance since incorporation to evaluate operational sustainability.
• Clarify the reasons behind the large current liabilities relative to assets and whether these include related party loans or short-term financing.
• Review any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess director's plans or commitments to address the negative equity situation.