ANDREW COUSINS PROPERTY SOLUTIONS LTD

Executive Summary

Andrew Cousins Property Solutions Ltd is a start-up property development company with no trading history and fully reliant on director loans for funding, resulting in a weak financial position and negative working capital. Due to the absence of revenue and limited equity, the company currently cannot support external credit facilities, posing high credit risk. Close monitoring of operational progress and financial improvements is essential before reconsidering lending options.

ANDREW COUSINS PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 14522021

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: DECLINE
   Andrew Cousins Property Solutions Ltd is a newly incorporated property development company with no recorded turnover or operating income in its first accounting period. The company's balance sheet shows fixed assets valued at £100,000 funded entirely by director loans of £100,000, reflected as current liabilities. There is no operational cash flow, and net current liabilities stand at £100,000, indicating working capital deficiency. The company has minimal equity (£2), and shareholder funds are effectively zero. Given the lack of trading history, income generation, and the reliance on director loans as the sole funding source, the company currently lacks the financial robustness to service external debt or repay credit facilities. Without revenue or positive cash flow, credit risk is high. Approval for lending would be premature at this stage.

2. Financial Strength:
   The balance sheet is weak. While fixed assets of £100,000 are reported (likely a property purchase), current liabilities of the same amount create a net current liability position of -£100,000. There are no liquid assets or receivables to offset liabilities. Shareholders' funds are negligible due to accumulated losses and no retained earnings. The company is entirely dependent on director funding with no external capital or reserves. This structure provides minimal financial cushion or solvency margin. The lack of turnover and profitability further limits the company’s capacity to improve its financial position in the near term.

3. Cash Flow Assessment:
   Cash flow is not directly disclosed but inferred to be negative or zero given no turnover and funded solely by director loans. The company has no operating income to cover administrative expenses or repay loans. Working capital is negative, indicating potential liquidity stress. There is no evidence of cash reserves or incoming trade receivables. Reliance on director funds to purchase property and cover development costs suggests cash flow is entirely dependent on continued capital injections rather than operating cash generation. This liquidity profile would make servicing bank debt challenging without a clear and imminent revenue stream.

4. Monitoring Points:

• Progress towards generating rental income or property sales to establish turnover and operating cash flow.
• Timely repayment or conversion of director loans to equity to improve the balance sheet and reduce current liabilities.
• Monitoring any increase in current liabilities or additional borrowings that may further strain liquidity.
• Development milestones and market conditions impacting property values and sales potential.
• Filing of next accounts and confirmation statements to ensure ongoing compliance and transparency.