ASANTE PROPERTY GROUP LTD

Executive Summary

Asante Property Group Ltd is an early-stage property investment company with a weak liquidity position and negative working capital, reflecting limited ability to service debt or credit facilities currently. The company’s financial strength depends heavily on director funding and property valuation, with no operational income reported yet. At this stage, credit exposure carries significant risk and is not recommended without substantial financial improvement or guarantees.

ASANTE PROPERTY GROUP LTD - Analysis Report

Company Number: 14656994

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: DECLINE
   Asante Property Group Ltd is a newly incorporated property investment company with minimal operating history and very limited financial resources. The company’s balance sheet shows a significant working capital deficit (£-87,306) driven by current liabilities of £87,442 against negligible current assets (£136), indicating poor liquidity. The repayment of short-term obligations, including a sizeable bank loan (£52,465) and director’s loan (£34,065), appears highly dependent on external refinancing or capital injections. Given the negative working capital, limited cash on hand (£36), and no reported revenue or profit, the company currently lacks the financial strength and cash flow to service further debt or credit facilities without material risk.

2. Financial Strength: Weak
   The company's total assets (£115,136) are largely invested in a single investment property valued at £115,000 (based on director valuation). Net assets stand at £20,570, which is modest but positive. However, the high level of current liabilities relative to current assets results in a negative net current asset position, undermining short-term financial stability. The deferred tax liability of £7,124 also reduces net assets. Shareholders’ funds are mainly comprised of profit and loss reserves (£20,470), but these are not supported by cash or receivables, limiting financial flexibility.

3. Cash Flow Assessment: Poor Liquidity
   Cash balances are nominal (£36), and debtors are minimal (£100), insufficient to cover current liabilities of £87,442. The company relies on bank loans and director loans as primary funding sources. There is no evidence of operational cash inflows or rental income yet, which raises concerns about the company’s ability to meet its near-term obligations. The director’s loan is interest-free and repayable on demand, which introduces some risk but also a potential source of liquidity if the director continues support. Overall, the current cash flow position is fragile and insufficient for servicing additional credit.

4. Monitoring Points:

• Liquidity improvements: Monitor cash flow and working capital trends closely.
• Debt servicing: Watch repayments on bank loans and director’s loan account.
• Property valuation: Confirm external professional valuations on investment property to validate asset base.
• Income generation: Track rental income or other revenue streams commencement and growth.
• Director support: Assess ongoing financial backing from the director, given the company’s early stage and reliance on related party funding.
• Filing compliance: Maintain timely filing of accounts and confirmation statements.