ALRIDHA PROPERTIES LIMITED

Executive Summary

Alridha Properties Limited exhibits weak financial health with negative net assets and significant working capital deficits, indicating poor ability to meet short-term liabilities. The company is highly leveraged with minimal operational scale and liquidity challenges. Credit facilities are not recommended without evidence of capital strengthening or operational improvement.

ALRIDHA PROPERTIES LIMITED - Analysis Report

Company Number: 13620110

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: DECLINE

Alridha Properties Limited presents a weak credit profile unsuitable for approval of new credit facilities at this stage. The company has negative net assets and shareholders’ funds (£-801 as of FY 2023), indicating insolvency on a balance sheet basis. Current liabilities significantly exceed current assets, producing a large working capital deficit of £183,928 in 2023, up sharply from £630 deficit in 2022. The company relies heavily on long-term creditors (£499,331), suggesting high leverage and potential liquidity risk. Absence of employees and minimal current assets (£5,675 in 2023) further underscore operational scale limitations. Without improvements in equity capital, cash flow, or profitability, the risk of default or financial distress is elevated.

2. Financial Strength:

The balance sheet shows fixed assets of £688,798 in 2023, likely property given the real estate SIC codes, but this asset is largely financed by creditors rather than equity. The net liabilities position and negative shareholders’ funds indicate insolvency, meaning the company’s liabilities exceed its assets. The sharp deterioration in net current assets from marginally negative to materially negative suggests worsening liquidity. The company remains a micro-entity with minimal operational scale (no employees reported). Overall, financial leverage is high, and capital structure weak.

3. Cash Flow Assessment:

Current assets dropped dramatically from £177,808 in 2022 to £5,675 in 2023, while current liabilities remained high (~£189k), indicating a severe liquidity crunch. Negative working capital of £183,928 means the company’s short-term obligations exceed its readily available assets. This scenario implies cash flow constraints and potential difficulty meeting near-term liabilities without additional financing or asset sales. The absence of employees and minimal current assets reduce the likelihood of generating operational cash flow internally.

4. Monitoring Points:

• Net current asset position: Watch for improvements or further deterioration in working capital.
• Shareholders’ funds: Any equity injections or improvements in net asset position.
• Creditor arrangements: Changes in long-term creditor balances or repayment schedules.
• Asset valuations: Stability or impairment of fixed assets, especially real estate holdings.
• Filing of next accounts and confirmation statement timely to assess ongoing compliance and financial trends.