Company Number: 12516822

Analysis Date: 2025-07-29 18:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Altaawus Properties Limited operates in the real estate sector primarily through letting and trading of owned property. The company has shown growth in investment property assets and net assets from £595 in 2023 to £11,280 in 2024, indicating some financial improvement. However, the company carries significant director loans (£176,801) classified as long-term creditors, and current liabilities notably exceed current assets, suggesting potential liquidity constraints. The absence of employees and limited cash resources (£4,922) indicate a small operational scale with reliance on director funding. Credit approval is conditional on continued director support and monitoring of liquidity and debt servicing capability.

2. Financial Strength:
   The balance sheet shows tangible fixed assets of £368 and investment property increased to £183,967 in 2024 from £126,862 in 2023, reflecting asset growth. Net assets improved significantly but remain modest at £11,280, supported entirely by retained earnings as share capital is nominal (£1). Current liabilities are low (£3,305) compared to prior years but long-term liabilities related to director loans remain high (£176,801). The company is solvent with assets exceeding liabilities, but the capital structure is heavily dependent on director loans rather than external financing or equity.

3. Cash Flow Assessment:
   Cash at bank is low at £4,922, reduced from £15,693 the prior year, indicating cash outflows or investment in property assets. Debtors have increased to £2,129 but remain small. Net current assets are positive but slim (£3,746), suggesting limited working capital buffer. No employees indicate low operational cash burn, but the company’s ability to cover short-term obligations depends on managing cash flow carefully and continuing director financial support. There is no indication of external borrowing beyond director loans, reducing refinancing risk but increasing reliance on internal funding.

4. Monitoring Points:

• Liquidity position and cash flow trends given low cash reserves relative to liabilities.
• Director loans balance and terms, ensuring ongoing support and repayment plan clarity.
• Investment property valuation and rental income generation to assess revenue stability.
• Changes in current liabilities and ability to meet short-term financial commitments.
• Any changes in management or operational scale that could impact financial stability.