AMWELL PROPERTIES LIMITED
Company number 03114976 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: Amwell Properties Limited
1. Credit Opinion: CONDITIONAL APPROVE
Rationale: Amwell Properties Limited presents a fundamentally sound credit profile underpinned by a substantial property portfolio and consistent net asset growth over nearly a decade. The current ratio of 2.25x and improving cash position demonstrate adequate short-term liquidity. However, two matters warrant conditions: a £165,000 contingent liability payable to a lessee before April 2029, and the reliance on director-assessed property valuations rather than independent RICS valuations. Credit approval is recommended subject to satisfactory clarification on these points and standard property security.
2. Financial Strength
Balance Sheet Summary (YE 31 October 2025):
| Item | 2025 | 2024 | Movement |
|---|---|---|---|
| Total Assets | £2,301,135 | £2,245,771 | +£55,364 |
| Net Assets | £1,585,509 | £1,521,205 | +£64,304 |
| Shareholders' Funds | £1,585,509 | £1,521,205 | +£64,304 |
Asset Composition: - Investment property: £2,182,029 (94.8% of total assets) - Tangible fixed assets: £25 (negligible) - Net current assets: £66,242
Capital Structure: - Share capital: £1,000 - Fair value reserve: £880,495 - Retained earnings: £704,014 - Gearing (total liabilities/net assets): 45.2% — moderate and declining
Key Observations: - Net assets have grown 89.8% over nine years (£835,787 in 2016 to £1,585,509 in 2025), reflecting both property appreciation and profit retention - The £64,304 increase in retained earnings in 2025 indicates continued profitable operations - A new secured mortgage of £423,174 now ranks against the property portfolio — this provides the lender with security but represents a material commitment - Provisions of £116,832 (likely deferred tax on revaluation gains) represent a future liability
Property Valuation Concern: Investment property is valued by the director based on opinions from lettings and estate agents, not formal RICS valuations. The cumulative revaluation gains of £997,327 on an original cost of £1,184,702 are substantial. While not unusual for small property companies, this methodology introduces subjectivity into the asset base.
3. Cash Flow Assessment
Liquidity Position:
| Item | 2025 | 2024 |
|---|---|---|
| Cash at bank | £117,989 | £62,519 |
| Debtors | £1,092 | £1,190 |
| Current assets | £119,081 | £63,709 |
| Current liabilities | £52,839 | £40,188 |
| Current ratio | 2.25x | 1.59x |
Cash Flow Indicators: - Cash has nearly doubled year-on-year (£62,519 to £117,989), a positive signal - Retained earnings growth of £64,304 suggests operating profitability after tax and any distributions - Bank loan repayments of approximately £22,558 were made during the year (reducing from £417,546 to £394,988)
Creditor Analysis:
| Creditor Category | Current | Non-Current | Total |
|---|---|---|---|
| Bank loans | £28,185 | £394,988 | £423,173 |
| Trade creditors | £5,090 | — | £5,090 |
| Taxation/social security | £18,254 | — | £18,254 |
| Other creditors | £1,310 | £150,967 | £152,277 |
| Total | £52,839 | £545,955 | £598,794 |
Working Capital Assessment: The current ratio of 2.25x is comfortable. However, the £165,000 contingent liability for leasehold improvements could crystallise early if the lessee vacates, which would strain liquidity. Current cash of £117,989 would be insufficient to cover this alone, though the property portfolio provides a refinancing option.
Debt Maturity Profile: £282,248 of bank loans fall due beyond five years, suggesting a structured repayment schedule. The secured mortgage (£423,174) is being serviced through instalments.
4. Monitoring Points
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Contingent Liability: The £165,000 commitment to refund leasehold improvements to a lessee (payable before April 2029 or earlier on vacation) requires ongoing monitoring. Request details of the lessee's intentions and any likelihood of early crystallisation.
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Property Valuation Methodology: The fair value model relies on director assessment informed by estate agent opinions rather than independent RICS valuations. Consider requesting an independent valuation if extending significant credit.
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Tax Liability Increase: Corporation tax payable rose from £7,116 to £18,254 — a 157% increase. Monitor whether this reflects increased rental income, property disposals, or changes in tax treatment.
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Secured Debt Position: The new mortgage of £423,174 ranks ahead of any unsecured creditors. Confirm the bank's priority position and any financial covenants attached to this facility.
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Other Creditors (Non-Current): The £150,967 owed to other creditors beyond one year requires clarification — determine whether this is related party lending or arms-length obligations.
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Cash Flow Sustainability: With zero employees and no visible operating cost structure in the accounts, establish the rental income stream and its ability to service debt obligations consistently.
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Interest Rate Exposure: With substantial bank debt on what appears to be variable or refinancing terms, monitor exposure to interest rate movements and refinance risk.