AZHASH PROPERTIES LIMITED

Executive Summary

AzhAsh Properties Limited is a micro-sized real estate company with a modest but positive net asset position and strong current ratio, indicating short-term financial soundness. However, recent declines in liquidity and net assets, coupled with limited financial disclosures, suggest a cautious credit approach, recommending conditional approval with ongoing monitoring of liquidity and operating performance. Further financial transparency will be essential for future credit decisions.

AZHASH PROPERTIES LIMITED - Analysis Report

Company Number: 12847208

Analysis Date: 2025-07-20 12:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AzhAsh Properties Limited shows a stable though small net asset base with positive working capital, indicating it can meet short-term obligations. However, the company is micro-sized with limited financial scale and no employees, suggesting a simple structure with possibly limited operational depth. The drop in current assets from £124,974 in 2023 to £28,960 in 2024, alongside a reduction in net assets from £32,637 to £25,542, indicates a decline in liquidity and financial resources that warrants caution. No audit was performed, and profitability data is unavailable, which limits insight into earnings and cash generation. Credit approval is recommended with conditions that include monitoring ongoing liquidity and requiring updated financial information if loan amounts are significant.

2. Financial Strength:
   The balance sheet shows net assets of £25,542 as of August 2024, down from £32,637 in the prior year. The company holds minimal fixed assets and relies primarily on current assets (£28,960) to cover current liabilities (£3,418), resulting in a comfortable current ratio (~8.5x), which signals strong short-term solvency. The equity is entirely shareholder funds with minimal share capital (£2.00), reflecting a small capital base. The decrease in current assets and net assets over the last year may indicate asset disposals or reduced cash reserves, which could impact financial stability if the trend continues.

3. Cash Flow Assessment:
   There is no detailed cash flow statement or profit and loss data, but the significant drop in current assets, particularly cash equivalents implied by reduced current assets, suggests tightening liquidity. The company had no employees, reducing fixed overheads, but cash flow sustainability cannot be confirmed without income or cash flow statements. Net current assets remain positive, but the downward trend requires cautious monitoring. The company’s ability to generate cash internally or through asset sales will be critical to meet debt service requirements.

4. Monitoring Points:

• Liquidity trends: Monitor quarterly or interim financials to detect further declines in current assets and net assets.
• Profitability and cash flow: Obtain profit and loss data to assess operational cash generation capacity.
• Working capital management: Watch the management of receivables, payables, and cash balances.
• Director conduct and governance: No adverse records noted; maintain oversight on management performance.
• Industry risks: Real estate market fluctuations could affect asset valuations and revenue streams.