ALBISTON PROPERTY INVESTMENTS LTD

Executive Summary

Albiston Property Investments Ltd is financially weak with negative net assets and significant liquidity shortfalls, raising concerns over its capacity to meet debt obligations. The company’s high leverage against fixed assets and negative working capital pose substantial credit risk. Without improved cash flow or capital support, credit facilities are not advisable at this stage.

ALBISTON PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 14615336

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion: DECLINE Albiston Property Investments Ltd exhibits weak financial health with persistent net liabilities and negative working capital. The company’s net assets are negative (£-24,162 as of March 2025), indicating balance sheet insolvency. Current liabilities significantly exceed current assets by approximately £163,745, signaling poor liquidity and an inability to meet short-term obligations without external support. The lack of employees and reliance on fixed assets without profitable operations heightens risk. Without demonstrable cash flow or equity injection plans, the company is unlikely to service debt commitments reliably.

2. Financial Strength: The balance sheet shows fixed assets of £461,807, which presumably represent property investment holdings. However, these are financed largely by creditors: current liabilities total £312,095 and long-term creditors approximately the same amount, creating a leveraged structure. Negative net current assets reveal strained working capital. The company's net liabilities and shareholders’ deficit highlight eroded equity. This weak financial position suggests vulnerability to market fluctuations in property values or tenant defaults.

3. Cash Flow Assessment: Current assets are negative (£-160,831), which is unusual and suggests accrued liabilities or prepaid expenses exceeding cash and receivables. Combined with high current liabilities, this implies liquidity stress and potential cash flow shortages. The company employs no staff and likely generates minimal operating cash flow. Given the absence of operating profits and negative working capital, the ability to meet short-term debts or unexpected expenses is doubtful without external funding.

4. Monitoring Points:

• Quarterly review of cash flow projections and liquidity ratios to detect worsening short-term solvency.
• Monitoring changes in property asset valuations or disposals that could impact balance sheet strength.
• Oversight of any new financing arrangements or equity injections to shore up capital.
• Tracking of creditor payment terms and any defaults or restructuring negotiations.
• Watch for any changes in company status or director involvement that might indicate distress.