ALIMOON PROPERTY INVESTMENT LIMITED

Executive Summary

Alimoon Property Investment Limited operates in property investment with significant fixed assets but carries a high level of long-term debt relative to equity. While short-term liquidity appears adequate, the company’s heavy leverage requires careful scrutiny of cash flow and asset valuations. Credit approval is conditional, pending further financial details to confirm debt servicing capability and collateral strength.

ALIMOON PROPERTY INVESTMENT LIMITED - Analysis Report

Company Number: 13679964

Analysis Date: 2025-07-29 18:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alimoon Property Investment Limited is an active private limited company engaged in property investment and management. The company is a micro-entity with modest net asset growth but currently exhibits a thin equity buffer (£84k net assets) against substantial long-term liabilities (~£4.23 million). While it holds significant fixed assets (~£4.22 million), the current liabilities and debt structure imply elevated leverage and refinancing risk. Credit approval is conditional on obtaining further assurances regarding the servicing of long-term debt obligations, cash flow forecasts, and collateral valuation. The directors’ low employee count and stable management tenure are positive but limited operational scale restricts diversification.

2. Financial Strength:

• Fixed Assets stable at £4.22 million, representing property holdings likely underpinning the company’s business.
• Current Assets have increased from £44k to £111k, improving liquidity marginally.
• Current liabilities remain low (~£21.5k), yielding positive net current assets (£89k), indicating short-term obligations are met.
• However, non-current liabilities of £4.23 million dominate the balance sheet and significantly exceed shareholders’ funds, signaling high financial leverage.
• Net assets increased from £26.5k (2021) to £84.2k (2023), suggesting modest retained earnings growth but still minimal equity relative to debt.

3. Cash Flow Assessment:

• Current asset increase and net current asset position indicate manageable short-term liquidity.
• The company’s ability to cover current liabilities is satisfactory, but the heavy long-term debt load requires consistent operating cash inflows or refinancing options.
• Insufficient data on cash flow from operations or income statement limits assessment of cash generation capacity.
• Given the nature of property investment, rental income or asset sales likely form the cash inflows—confirmation of these is necessary to confirm debt service capability.

4. Monitoring Points:

• Monitor net asset and equity growth relative to long-term debt to assess deleveraging progress.
• Track cash flow adequacy for interest and principal payments on long-term liabilities.
• Verify valuation and liquidity of fixed assets as collateral against borrowing.
• Watch for timely submission of statutory filings and any changes in director appointments or PSC ownership that may affect governance.
• Observe market conditions in property sector influencing asset values and rental income stability.