Company Number: 12795257

Analysis Date: 2025-07-19 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Amblestowe Properties Limited is a private limited company engaged in property unit trust activities, controlled by experienced directors with a stable presence since 2020. However, the company shows significant net current liabilities (£54,773) and a large related party loan balance (£948,541) owed interest-free to directors, which suggests reliance on director funding for liquidity. The company’s net assets have improved modestly from £5,322 in 2023 to £21,799 in 2024, but its working capital position remains negative. Approval is recommended subject to continued director support and monitoring of liquidity risk.

2. Financial Strength:
   The company holds tangible fixed assets valued at approximately £1.03 million, representing long-term investments presumably in property assets. Net assets increased to £21,799 in 2024, supported by retained earnings growth. However, current liabilities total £60,801 with current assets only £6,028, leading to negative net current assets (working capital deficit). The substantial long-term creditor balance (£948,542) reflects an interest-free loan from directors, indicating reliance on internal funding rather than external borrowing. The balance sheet shows asset coverage but liquidity constraints.

3. Cash Flow Assessment:
   Cash on hand declined from £6,343 to £4,229 year-on-year, with modest debtor balances (£1,799) and no significant external trade receivables. The working capital deficit implies limited short-term cash resources to meet immediate liabilities without continued director funding. The company’s cash flow is dependent on the interest-free loan provided by the directors, which mitigates liquidity risk but represents a contingent risk if director support wanes.

4. Monitoring Points:

• Liquidity metrics, specifically current ratio and net current assets, to detect any further deterioration in working capital.
• Director loan balances and any changes in terms or repayment plans to assess ongoing funding support.
• Cash flow trends and operating cash generation capacity to evaluate self-sufficiency.
• Any changes in fixed asset valuation or impairments affecting net asset base.
• Compliance with filing deadlines and governance standards, which are currently satisfactory.