ADO PROPERTY SERVICES LTD

Executive Summary

ADO PROPERTY SERVICES LTD presents a micro-entity profile with negative net worth but positive working capital, reflecting a leveraged yet currently liquid position. Credit approval is conditional, contingent on stable cash flow and creditor arrangements due to balance sheet weaknesses. Ongoing monitoring of liquidity and debt levels is essential to manage credit risk effectively.

ADO PROPERTY SERVICES LTD - Analysis Report

Company Number: 13149013

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ADO PROPERTY SERVICES LTD is an active micro-entity in the real estate letting sector with a single director shareholder controlling 100% of voting rights. The company exhibits negative net assets of approximately £96k as of January 2024, indicating an equity deficiency. However, current assets exceed current liabilities, providing positive working capital. The company’s ability to service debt depends on the nature and terms of its liabilities, which appear mostly long-term. Given the small scale, negative net worth, and continued shareholder support, credit approval is conditional upon monitoring cash flow and ensuring no material deterioration in asset values or creditor terms.

2. Financial Strength:
   The balance sheet shows fixed assets around £170k and current assets of £101k, with current liabilities seemingly low (net current assets £101k). However, the company carries long-term creditors of £367k, pushing net assets negative by £96k. This indicates the company is leveraged with more liabilities than assets overall. The negative shareholders’ funds reflect accumulated losses or possibly initial financing by debt rather than equity. The fixed asset base supports the business model in real estate, but the balance sheet weakness limits financial resilience.

3. Cash Flow Assessment:
   Current assets exceeding current liabilities suggest the company can meet short-term obligations, signaling adequate liquidity at the balance sheet date. The average employee count of 1 implies low operational expenses. However, the presence of significant long-term creditors means the company must generate consistent operational cash flows or refinance to meet these commitments. The accounts do not disclose cash or profit figures, so cash flow stability should be confirmed with management.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios to ensure short-term obligations remain covered.
• Monitor the level and terms of long-term creditors to assess refinancing or repayment risk.
• Review any upcoming filings for profit and cash flow data to evaluate operational cash generation.
• Watch for any director or shareholder actions to recapitalize or restructure liabilities.
• Follow industry trends in real estate letting, especially rental demand and market valuations that impact asset values.