ABODE PROPERTY LETTINGS LTD

Executive Summary

Abode Property Lettings Ltd is a newly formed micro-entity with limited financial history and a fragile equity base. While current liquidity appears adequate to meet short-term liabilities, the company’s financial capacity is modest, requiring cautious credit exposure. Approval is feasible on a conditional basis with close monitoring of financial performance and compliance going forward.

ABODE PROPERTY LETTINGS LTD - Analysis Report

Company Number: 14971708

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Abode Property Lettings Ltd is a newly incorporated micro-entity with limited operating history (incorporated June 2023). The company shows a positive net current asset position (£426) but minimal net assets (£66), indicating a very modest financial base. The low equity and working capital buffer suggest limited capacity to absorb financial shocks or support significant borrowing. However, no overdue filings or adverse director records are noted, and the company appears compliant. Credit approval can be considered with conditions such as limited exposure, ongoing monitoring, and possibly requiring personal guarantees or additional collateral given the nascent stage and limited financial depth.

2. Financial Strength:
   The balance sheet reflects a micro-entity scale with current assets of £5,055 primarily likely cash or receivables, against current liabilities of £4,629, resulting in a small positive working capital. The net asset base (£66) provides little cushion, showing the company is essentially at break-even equity after a first year. No fixed assets or long-term investments are reported, indicating the company’s asset base is minimal. The lack of employees and auditors’ exemption is consistent with a start-up micro business profile. Overall, financial strength is fragile but not alarming given the company’s age and scale.

3. Cash Flow Assessment:
   The close parity between current assets and current liabilities suggests that liquidity is tight but currently sufficient to cover short-term obligations. The positive net current assets provide a small working capital buffer, but the company will need to maintain careful cash management. There is no detailed cash flow statement available, but the minimal accruals and deferred income (£360) indicate limited complex liabilities. Given the company’s recent incorporation, cash flow stability is unproven and should be watched closely.

4. Monitoring Points:

• Timely filing of next accounts and confirmation statements to ensure ongoing compliance.
• Changes in working capital and net asset position to assess financial improvement or deterioration.
• Revenue and profitability trends as they emerge in future filings to gauge business viability.
• Director and shareholder stability to avoid governance risks.
• Credit exposures relative to equity and cash flow to prevent overextension.