A PROPERTY GROUP LIMITED

Executive Summary

A Property Group Limited demonstrates ongoing financial weakness with negative net assets worsening over recent years, minimal liquidity, and significant long-term liabilities. Its micro-entity status and small operational scale limit its ability to generate sufficient cash flow to service debt. Given these factors, the company presents a high credit risk and credit approval is not recommended at this stage.

A PROPERTY GROUP LIMITED - Analysis Report

Company Number: 12512074

Analysis Date: 2025-07-29 17:26 UTC

1. Credit Opinion: DECLINE
   A Property Group Limited shows persistent net liabilities with shareholders’ funds negative at £13,350 as of the latest accounts. The company’s fixed assets remain stable but current assets are minimal (£493) with current liabilities not explicitly stated in the accounts document but indicated as very low or possibly understated. However, significant long-term creditors of £95,727 (amounts falling due after more than one year) suggest heavy indebtedness. The negative net asset position and absence of profitability or equity injections raise concerns about its ability to meet debt obligations or absorb financial shocks. The micro-entity scale and a single employee imply limited operational capacity. No evidence of improving profitability or cash flow strength is present, signaling financial fragility and elevated credit risk.

2. Financial Strength:
   The balance sheet reveals a stable but small fixed asset base (~£81-86k) but an increasing net liability position worsening from -£692 in 2020 to -£13,350 in 2024, indicating accumulated losses or undercapitalization. Net current assets are positive but very low (£640 in 2024), providing minimal buffer for short-term obligations. The company’s long-term creditors have increased from £89k in 2020 to nearly £96k in 2024, showing reliance on external financing with no equity cushion. Share capital is nominal (£10), suggesting very limited owner investment. Overall, the company lacks financial robustness and is highly leveraged relative to its asset base.

3. Cash Flow Assessment:
   Current assets dropped sharply from £34,350 in 2021 to £493 in 2024, indicating a severe reduction in liquidity and working capital. The small net current assets and minimal cash equivalents imply constrained operational liquidity. The company’s ability to generate positive cash flow from operations is questionable given no reported profits and declining liquidity metrics. The average employee count is one, suggesting a very small scale operation with limited cash flow generation capacity. The company likely depends on external funding or director support to meet ongoing expenses, which is not sustainable for credit risk purposes.

4. Monitoring Points:

• Negative equity trend: Watch for any reversal or further deterioration in net asset value.
• Liquidity position: Monitor current asset levels and working capital changes in future filings.
• Long-term creditor levels: Track any increase in borrowings or restructuring efforts.
• Profitability indicators: Look for any reported profits or cash flow improvements.
• Filings timeliness: Ensure continued compliance with filing requirements to avoid regulatory risk.
• Director conduct and any changes in management or ownership that might affect financial discipline.