Company Number: 12696836

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Anzali Property Ltd presents a relatively small but improving financial position, with positive net current assets and shareholders’ funds growth in the latest period. However, the company’s modest fixed asset base and reliance on amounts owed by participating interests (debtors) as a significant portion of current assets introduces some risk. The recent change in directors and shareholdings should be monitored for stability and governance continuity. Approval is recommended with conditions on regular monitoring of liquidity and debtor quality.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities of £89,435 as at 30 November 2023, nearly doubling from £48,967 in mid-2022. Shareholders’ funds increased correspondingly to £89,435, indicating retained earnings growth and improved equity. Fixed assets decreased from £63,932 to £44,336, largely due to amortisation and depreciation, reflecting normal asset usage. The company remains small, with minimal share capital (£100), and limited tangible assets, consistent with a property letting business model.

3. Cash Flow Assessment:
   Current assets stand at £158,593, with cash holdings at £12,658, a significant drop from £112,855 the prior year. Debtors increased substantially to £145,935 from £3,894, suggesting a shift in working capital structure and potential concentration risk. Current liabilities reduced slightly to £113,494 from £131,714, resulting in positive net current assets of £45,099 versus a prior deficit. Liquidity is currently adequate but dependent on timely collection of debtors. Working capital management and cash conversion cycles must be closely monitored.

4. Monitoring Points:

• Debtor aging and collectability, especially the large balance owed by participating interests.
• Cash flow trends, particularly whether cash balances stabilize or further decline.
• Director and ownership changes impact on company strategy and governance.
• Ongoing profitability and ability to generate retained earnings to support equity.
• Maintenance or growth of net current assets and overall asset quality.