Company Number: 13128257

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   75 The Avenue Limited is a micro private limited company engaged in real estate letting. While the company shows net positive shareholders’ funds and a stable fixed asset base, it has a concerning net current liability position and significant long-term liabilities. The high creditors due after one year (£282.7k) relative to net assets (£55.1k) indicates leverage risk. Approval of credit facilities should be conditional on clarifying the nature and security of long-term debt, confirmation of stable rental income, and ongoing monitoring of liquidity.

2. Financial Strength: Moderate but leveraged
   The company’s fixed assets remain stable at £345k, reflecting ownership or leasehold of real estate likely critical to operations. Shareholders’ funds increased from £33.3k to £55.1k year-over-year, indicating some retained earnings or capital injection. However, current assets are very low (£807) and net current liabilities stand at (£7.4k), signalling working capital pressure. The long-term creditors of £282.7k represent significant leverage that could constrain financial flexibility.

3. Cash Flow Assessment: Limited liquidity and working capital constraints
   Current assets are minimal, primarily cash or receivables at £807, while current liabilities are £8,248, resulting in a net current liability position. This suggests tight short-term liquidity and potential pressure in meeting near-term obligations. The company employs only 2 staff, which may help keep operating expenses low. Cash flow from operations and rental income stability must be verified to ensure ongoing debt servicing capacity.

4. Monitoring Points:

• Track monthly cash flow and rental income collections to confirm liquidity sufficiency.
• Review covenant compliance or repayment schedule on long-term creditors of £282.7k.
• Monitor any changes in property valuations affecting fixed asset security.
• Watch for any delays in statutory filings or director changes that might signal governance issues.