AQUINA COMMUNITY LIMITED

Executive Summary

Aquina Community Limited operates in the real estate letting sector with stable fixed assets but exhibits negative working capital and a leveraged balance sheet. The company’s liquidity has declined sharply, suggesting potential short-term cash flow constraints. Conditional credit approval is recommended, subject to close monitoring of liquidity and debt servicing capabilities.

AQUINA COMMUNITY LIMITED - Analysis Report

Company Number: 13787653

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aquina Community Limited is a small private company engaged in letting and operating own or leased real estate. The company shows modest net assets (£6,024 as of October 2023) and a negative net current asset position (-£13,588), indicating current liabilities exceed current assets. The company has significant long-term liabilities (£188,789), largely bank loans and other creditors, which outweigh shareholders’ funds. However, there is no indication of overdue filings or legal distress. Given the company’s active status, stable property asset base (£208,401), and the controlling interest of Aquina Investments Ltd, credit approval can be considered but should be conditional on further assurances on cash flow management and loan servicing capacity.

2. Financial Strength:

• Tangible fixed assets remain steady at £208,401, without depreciation charged, implying asset stability but potential lack of wear and tear accounting.
• Net assets increased slightly from £4,359 (2022) to £6,024 (2023), showing marginal improvement in equity.
• The company relies heavily on external financing, with total liabilities exceeding assets significantly when considering current liabilities.
• Shareholders’ funds are minimal relative to total liabilities, indicating a leveraged balance sheet and limited equity buffer.

3. Cash Flow Assessment:

• Cash at bank dropped substantially from £51,033 (2022) to £5,060 (2023), a significant liquidity reduction that raises concerns about short-term cash availability.
• Negative net current assets indicate working capital deficiency, potentially pressuring day-to-day operations and debt servicing.
• Current liabilities decreased from £67,258 to £20,614, which is positive, but current liabilities are still greater than current assets.
• Debtors are low (~£2,000), so the company does not have significant receivables to convert into cash quickly.

4. Monitoring Points:

• Liquidity trends: Monitor monthly cash flow to ensure sufficient liquidity to meet short-term obligations.
• Debt servicing: Confirm the company’s ability to meet bank loan repayments, particularly given the large long-term loan balance.
• Asset valuation: Watch for any impairment or depreciation on property assets that may affect net assets.
• Related party transactions: Monitor loans from Aquina Investments Ltd for repayment terms and potential impact on creditor priority.
• Filing compliance: Continue to ensure accounts and confirmation statements remain timely.