131 ST JOHN'S HILL (SANDERSTEAD) LTD

Executive Summary

131 ST JOHN'S HILL (SANDERSTEAD) LTD is a start-up real estate company with limited independent trading history and a balance sheet reliant on intra-group receivables. While showing a modest positive working capital position, the company’s cash resources are minimal and it lacks tangible asset security. Credit approval is recommended on a conditional basis pending evidence of autonomous trading performance and liquidity improvement.

131 ST JOHN'S HILL (SANDERSTEAD) LTD - Analysis Report

Company Number: 15168396

Analysis Date: 2025-07-20 19:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   131 ST JOHN'S HILL (SANDERSTEAD) LTD is a newly incorporated private limited company (September 2023) engaged in real estate activities (SIC codes 68100 and 68209). The company has no trading history beyond its first 12 months and filed unaudited accounts showing a net current asset position of £77,449. The debtor balance of £193,075 relates mostly to amounts owed by group undertakings, indicating intra-group funding rather than external revenue generation. The company holds no investment property on its balance sheet as additions and disposals in investment property fully net to zero during the period. Given the limited trading history, reliance on related party receivables, and modest equity base, credit approval should be conditional on monitoring future trading performance and cash flow generation once the business is operational beyond the start-up phase.

2. Financial Strength:
   The balance sheet shows total current assets of £193,078 against current liabilities of £115,629, resulting in positive net current assets of £77,449, which also equals shareholders’ funds. The company has no long-term liabilities or fixed assets recorded. The dependence on amounts owed by group undertakings (over 99% of debtors) suggests limited independent asset backing and a need to assess the financial strength of the parent or related companies. The absence of investment property at period end reduces asset security for lending. The small equity base and start-up status reflect typical new company risk.

3. Cash Flow Assessment:
   Cash at bank is minimal (£3), highlighting limited liquid resources. The company's working capital position is positive due to receivables from group undertakings, but these are not immediately liquid cash inflows. Trade creditors of £88,194 and corporation tax of £25,985 indicate near-term cash outflows. The company’s ability to meet short-term obligations depends heavily on the collectability of intra-group receivables and potential group support. Monitoring cash flow conversion from operations and related party balances will be critical.

4. Monitoring Points:

• Future trading revenue and profit generation independent of group funding.
• Collection and ageing of amounts owed by group undertakings.
• Cash flow trends and liquidity improvements beyond start-up phase.
• Changes in asset base, especially acquisition or disposal of investment property or fixed assets.
• Any increase in liabilities or external borrowing.
• Director conduct and compliance with filing deadlines (currently up to date).