ALTHORP PROPERTY DEVELOPMENTS LTD

Executive Summary

Althorp Property Developments Ltd is a newly formed micro-entity with a marginally negative net asset position and working capital deficit, reflecting an early-stage financial profile. While the company is currently compliant with filing obligations and shows stable management, its weak balance sheet and liquidity position warrant a cautious credit approach. Conditional approval is recommended, subject to monitoring of financial improvements and cash flow stability.

ALTHORP PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 14265561

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Althorp Property Developments Ltd is a very recently incorporated micro-entity operating in real estate letting. The company shows a marginally negative net asset position (£-1,614) and net current liabilities (£-774) as at 31 July 2023, indicating a weak balance sheet. However, no overdue filings or signs of distress exist. Given the company’s youth and modest scale, credit approval should be conditional on the provision of updated financials and evidence of improving working capital and profitability. The directors’ ownership and control structure appear stable with no adverse governance flags.

2. Financial Strength:
   The balance sheet reveals limited financial strength. Current assets of £229,226 are offset by current liabilities of £230,000, resulting in a small working capital deficit. Negative net assets and shareholders’ funds reflect start-up losses or initial expenses exceeding capital injections. The absence of fixed assets or long-term investment information suggests limited tangible collateral. The micro-entity status means limited financial disclosure, increasing uncertainty. Overall, the financial position is fragile and requires close monitoring.

3. Cash Flow Assessment:
   No explicit cash flow statement is provided, but the working capital deficit and negative net assets imply cash flow constraints. The company employed only 2 staff, indicating low overheads; however, the current liabilities nearly equal current assets, pointing to tight liquidity. The company’s ability to meet short-term obligations depends on timely collection of receivables or capital injections by shareholders. Without evidence of positive operating cash flow or external funding, liquidity risk remains elevated.

4. Monitoring Points:

• Improvement in working capital and net asset position in subsequent accounts
• Demonstrated positive operating cash flows or evidence of shareholder support
• Timely filing of annual accounts and confirmation statements
• Changes in credit terms with suppliers or creditors that may affect liquidity
• Any director changes or adverse events impacting management stability