Company Number: 12706669

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alexander Matthews Property Limited shows persistent net liabilities and negative working capital over recent years, indicating financial stress. However, the company remains active, with directors injecting funds via loans (noted director loan accounts increasing from £29,139 in 2023 to £33,379 in 2024), which signals some continued support. The business operates in real estate management and agency activities, sectors that can be cyclical but potentially lucrative with proper management. Given the negative equity position and ongoing cash shortages (cash on hand of only £82), approval for credit facilities should be conditional on improved liquidity and a clear plan for restoring positive net assets and working capital.

2. Financial Strength:
   The balance sheet reveals net liabilities of £5,148 as of June 2024, a slight improvement from £5,661 in 2023 but still negative. Current liabilities exceed current assets by £5,148, indicating working capital deficits. The company holds minimal fixed assets or cash balances. Shareholders’ funds are negative (£-5,248), reflecting accumulated losses. The presence of directors’ loan accounts as a significant creditor (£33,379) suggests reliance on internal funding to bridge operational shortfalls. This weak equity base limits the company’s ability to absorb financial shocks or secure external financing without additional guarantees or equity injections.

3. Cash Flow Assessment:
   Liquidity is constrained with cash balances at £82 and net current liabilities of £5,148. Debtors (£41,557) are the primary current asset, but the realization timeline and collectability risk are uncertain and critical to short-term cash flow. The company’s current liabilities include trade creditors, payroll liabilities, social security, and directors’ loans, with some accrued expenses and deferred income. Negative net current assets highlight potential difficulties in meeting short-term obligations without further director support or external funding. Monitoring debtor turnover and cash conversion cycles will be essential.

4. Monitoring Points:

• Track monthly cash flow and debtor collections closely to ensure timely cash inflows to cover liabilities.
• Monitor director loan accounts for changes, as continued reliance signals funding risk.
• Review any operational changes or contracts that may improve revenue and margin, reducing losses.
• Watch for any overdue filings or regulatory issues that could indicate governance or compliance risks.
• Assess external market conditions in real estate management that could impact business stability.