Company Number: 12685452

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: DECLINE
   AKP PROPERTY LIMITED demonstrates weak creditworthiness due to a persistent negative net current asset position and reliance on director advances to fund operations. The company’s current liabilities consistently exceed current assets, indicating liquidity stress. The large negative net current assets in 2024 (£-430,533) and increasing director loan balances (£486,387) raise concerns about the company's ability to service external debt or meet short-term obligations without continued director support. Additionally, low share capital (£30) and minimal equity (£63,482) relative to liabilities reflect a fragile financial structure.

2. Financial Strength:
   The balance sheet shows fixed assets stable at £371,453 over the last few years, which supports some asset backing. However, the company has a considerable overdraft or director loan balance classified as current liabilities (£486,387 in 2024), which exceeds current assets significantly (£55,854). The negative total assets less current liabilities (£-59,080) and net assets (£63,482) suggest the company is financially stretched. Shareholders’ funds are minimal and have only marginally improved since incorporation, indicating limited retained earnings or capital injection.

3. Cash Flow Assessment:
   The company’s cash flow position appears weak as evidenced by very low current assets primarily consisting of cash or receivables (£55,854 in 2024, up from £991 in 2023) against substantial current liabilities. The negative net current assets confirm insufficient working capital to cover immediate liabilities. Moreover, reliance on director loans to fund operations suggests external cash flow sources are limited or unavailable. The absence of an audit and micro-entity accounting regime may limit transparency but the available data strongly points to liquidity risk.

4. Monitoring Points:

• Monitor director loan account balances and any changes in their status (repayment or further advances).
• Track net current asset position and any improvement in working capital ratios.
• Review upcoming accounts filings and confirmation statements for any changes in capital structure or new debt facilities.
• Watch for any arrears or missed payments on trade creditors or financial obligations.
• Assess operational cash flow generation once more detailed P&L or cash flow statements become available.