AS CLARK PROPERTIES LTD

Executive Summary

AS Clark Properties Ltd is currently in financial distress with sustained negative net assets and poor liquidity evidenced by high current liabilities relative to assets. The company’s ability to meet debt obligations or commercial agreements is doubtful without significant operational or financial restructuring. Given these factors, credit approval is not recommended at this time.

AS CLARK PROPERTIES LTD - Analysis Report

Company Number: 12432959

Analysis Date: 2025-07-20 15:59 UTC

1. Credit Opinion: DECLINE
   AS Clark Properties Ltd shows significant financial distress as evidenced by persistent negative net assets and shareholder funds over multiple years, currently at -£40,365. The company operates in the real estate sector, a capital-intensive industry, but has a micro-entity status with limited turnover data, making it challenging to assess revenue streams. Current liabilities are very high (£397,705) relative to current assets (£1,666), resulting in a large working capital deficit (£-113,582), indicating poor short-term liquidity. The fixed assets have decreased slightly but remain substantial (£470,922), likely reflecting property holdings. The company has not filed profit and loss data, but the ongoing erosion of equity suggests recurring losses or insufficient profitability. Given the negative equity position, weak liquidity, and lack of profitability data, the company’s ability to service debt or meet commercial obligations is doubtful without additional capital injection or operational improvement. The director is the sole shareholder and has been consistent, but no evidence of improved financial stewardship is apparent. Therefore, extending credit would be high risk.

2. Financial Strength:
   The balance sheet is weak. Fixed assets representing property holdings remain the largest component (£470k), but these are financed predominantly by long-term creditors (£397,705) and current liabilities exceeding current assets by over £113k, indicating reliance on debt and poor working capital management. Negative net assets and shareholder funds confirm that liabilities exceed assets. The company’s financial trajectory is negative with increasing net liabilities over the last three years, despite a slight reduction in fixed assets. Absence of retained earnings or reserves further weakens financial resilience, and micro-entity reporting limits visibility into income or cash generation.

3. Cash Flow Assessment:
   Current assets (cash or equivalents) are negligible (£1,666) compared to current liabilities (£115,248), implying critical short-term liquidity issues. Negative working capital highlights risk of inability to meet short-term obligations as they fall due. Without profit and loss details, cash flow from operations cannot be directly assessed, but the negative equity trend and high creditor balances suggest poor cash inflows or significant cash outflows. The company employs only one person (likely the director), minimizing payroll burden, but current financial structure indicates reliance on external financing or capital injections to sustain operations.

4. Monitoring Points:

• Monitor filing of next annual accounts for any improvement in net assets or reduction in liabilities.
• Track working capital changes to assess liquidity improvement or deterioration.
• Watch for any capital injections or director loans that may improve solvency.
• Evaluate any disclosed profit and loss information if filed, to confirm operational performance.
• Review director conduct and any changes in ownership or management that might impact risk profile.