Company Number: 12683802

Analysis Date: 2025-07-29 13:06 UTC

1. Credit Opinion: DECLINE
   Asrex Properties Ltd exhibits persistent net liabilities and negative shareholders’ funds over the last three years, with the net liabilities worsening from -£213 (2023) to -£406 (2024). The company is unable to cover current liabilities with current assets, reflected in a negative net working capital position that has deteriorated from -£113 to -£306. These financials indicate weak financial resilience and an inability to meet short-term obligations reliably. Without evidence of operational cash flow or capital injection plans, the company’s capacity to service new or existing debt is highly questionable.

2. Financial Strength:
   The company falls under the micro entity category and is involved in real estate letting activities. Its balance sheet shows a consistent pattern of net liabilities and negative equity, with total liabilities exceeding assets by £406k as of the latest accounts. There are no fixed assets reported, suggesting limited tangible collateral or asset backing. The share capital is nominal (£100), indicating minimal shareholder funding. The worsening net current liabilities and overall net liabilities imply ongoing financial distress and insufficient capitalization.

3. Cash Flow Assessment:
   Current assets are minimal (£394) and insufficient to cover current liabilities of £700, resulting in a negative working capital of -£306. This negative liquidity position suggests potential difficulties in meeting short-term financial commitments as they fall due. No information on cash balances, receivables quality, or operational cash flows is provided, but the persistent negative net current assets raise concerns about liquidity risk and the company’s ability to sustain operations without external financial support.

4. Monitoring Points:

• Monitor future filings for any improvements in net current assets and net equity.
• Watch for capital injections or shareholder loans that could improve liquidity.
• Track any changes in liabilities due after one year and efforts to refinance or restructure debt.
• Monitor operational performance indicators, if available, to assess cash generation capabilities.
• Review director and management actions regarding financial turnaround or restructuring plans.