369 DEVELOPERS LTD

Executive Summary

369 Developers Ltd has demonstrated a strong recovery in net assets driven by fixed asset growth, aligning with its real estate trading activities. However, liquidity remains tight due to current liabilities outweighing current assets, posing short-term cash flow risks. Credit should be extended cautiously with conditions on liquidity improvement and ongoing financial monitoring.

369 DEVELOPERS LTD - Analysis Report

Company Number: 13225003

Analysis Date: 2025-07-20 13:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   369 Developers Ltd shows a significant improvement in net assets and working capital over the last financial year, moving from a negative net asset position of £(19,033) in 2023 to a positive £240,472 in 2024. This turnaround suggests enhanced financial management and asset base growth, mainly driven by fixed asset increases likely tied to real estate holdings. However, the company remains highly leveraged with current liabilities (£684,645) exceeding current assets (£56,185), indicating liquidity constraints. Given the micro-entity status and lack of profit and loss details, lending or credit extension should be conditional on continued improvement in liquidity and cash flow monitoring.

2. Financial Strength:
   The balance sheet exhibits a strong fixed asset base (£910,513) consistent with its SIC code related to buying and selling own real estate. The company’s net assets of £240,472 represent shareholder equity, showing a positive turnaround from the prior year’s deficit. The substantial current liabilities (£684,645) relative to current assets (£56,185) raise concerns about short-term obligations. Overall, the company’s financial strength relies heavily on its fixed assets, which may not be easily liquidated to cover short-term debts, indicating a moderate risk profile.

3. Cash Flow Assessment:
   Current assets are modest and insufficient to cover current liabilities, producing a net current asset position of only £15,349. This indicates tight working capital and potential liquidity pressure. The absence of detailed cash flow statements and profit/loss data limits a full assessment, but the working capital position suggests the company must carefully manage its payables and receivables cycle. Cash flow from operations and access to additional credit facilities would be critical to sustain ongoing operations without liquidity stress.

4. Monitoring Points:

• Track quarterly updates of current assets versus current liabilities to ensure liquidity is improving.
• Monitor any changes in debt structure, especially short-term creditor levels and repayment schedules.
• Review operational performance and profitability when available to assess cash generation capacity.
• Observe director changes and PSC structure for any governance or control risks.
• Watch for timely filing of accounts and confirmation statements to avoid compliance risks.