SR HOMES LIMITED

1. Risk Rating: MEDIUM

The company is solvent with a consistently positive net asset position and no overdue regulatory filings. However, it is a micro-sized firm with limited public financial disclosure, recent growth in creditors, and a single controlling director, meaning liquidity and operational continuity cannot be fully verified from the available information.

2. Key Concerns

• Increase in creditors: Creditors due within one year rose from £7,090 in 2023 to £12,171 in 2024, an increase of approximately 72%. The underlying composition of these liabilities is undisclosed, which makes it difficult to determine whether this reflects normal trade credit, tax obligations, or accrued but unpaid costs. The related accruals and deferred income balance also nearly doubled, from £690 to £1,390.
• Absence of profit and loss information: The company has filed filleted micro-entity accounts, meaning turnover, operating margins, and cash generated from operations are not publicly available. An investor cannot assess sustainable earnings capacity from this data alone, and the balance sheet provides only a narrow view of financial health.
• Key-person and concentration risk: The company is reliant on one director, Xxxxxx Xxxxxxxxname shown to subscribers, who holds more than 75% of voting and share rights and has sole discretion over appointments. Continuity of the business could be critically affected by this individual’s departure, incapacity, or disqualification. There is no mention of additional management depth.

3. Positive Indicators

• Positive solvency position: Net assets have grown steadily from £2,234 in 2015 to £19,454 in 2024, with no year of negative shareholders' funds observed.
• Adequate liquidity: Current assets of £30,820 comfortably cover current liabilities of £12,171 and accruals of £1,390, giving a current ratio of approximately 2.3. The company appears able to meet near‑term obligations.
• Good compliance record: The company is listed as Active, has filed its confirmation statement up to 11 September 2026, and the latest accounts are not overdue. Audit exemption has been properly claimed under section 477 of the Companies Act 2006, and no disqualification or insolvency events are evident in the supplied records.

4. Due Diligence Notes

• Obtain full management accounts and profit and loss statements for the year ended 30 September 2025 (and, if available, a 2025 filed balance sheet) to establish turnover, margins, and cash flow trends.
• Request a breakdown of creditors and accruals, distinguishing between trade payables, taxation, any director-related loans, and deferred income. In particular, investigate the reason for the 2024 increase in liabilities.
• Confirm registration under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations and membership of a recognised estate agency redress scheme, as required for real estate agency activities.
• Assess the company’s operational resilience through a review of client money handling procedures, professional indemnity insurance, and any contractual reliance on third-party portals or referral networks.
• Evaluate succession planning and the potential impact of the sole director and majority shareholder’s absence on business continuity.
• Review UK property market sensitivity, especially because the SIC code (68310 – real estate agencies) is cyclical and exposed to transaction volumes, interest rates, and consumer confidence.

Executive Summary

SR Homes Limited appears financially stable based on available balance sheet data, with positive net assets, a healthy current ratio, and no overdue filings. Nevertheless, the recent increase in creditors, limited public profit disclosure, and concentration of control in one individual warrant caution. Due diligence should focus on obtaining profit and cash flow details, understanding liability composition, and verifying regulatory compliance for its estate agency activities.

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