BATCH PROPERTY INVESTMENTS LTD

Executive Summary

Batch Property Investments Ltd operates in property letting with substantial fixed assets financed largely by debt, resulting in negative net current assets and a slight net liability position at year-end 2023. The company’s liquidity has weakened as cash reserves diminished, posing risks to short-term debt servicing. Conditional credit approval is advised, subject to stringent monitoring of cash flow, profitability, and covenant compliance to mitigate financial stress risks.

BATCH PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 12893463

Analysis Date: 2025-07-29 21:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Batch Property Investments Ltd is an active private limited company engaged in real estate letting. The company holds significant fixed assets in property (£308k) but has negative net current assets (£7.9k deficit) and a net liability position of £3.3k at the end of 2023, down from positive net assets in 2022. The large long-term liabilities (£303.7k) compared to equity and working capital deficits reflect a leveraged position. The company’s ability to meet short-term obligations is currently constrained. Approval is recommended with conditions, requiring close monitoring of cash flow and debt servicing capacity and potentially additional collateral or guarantees if new credit is extended.

2. Financial Strength:
   The balance sheet reveals a leveraged structure typical of property investment firms using debt financing. Fixed assets are stable with a slight increase due to additions, and no depreciation on freehold land & buildings, preserving asset value. However, negative shareholders’ funds (-£39.8k P&L reserve) indicate accumulated losses or distributions exceeding profits, causing net liabilities. The relatively small share capital (£2) suggests limited equity buffer. Current liabilities are modest (£9.9k) but exceed current assets (£2.0k), resulting in negative working capital, which is a liquidity risk. Long-term bank loans and other creditors constitute the majority of liabilities and must be managed prudently.

3. Cash Flow Assessment:
   Cash balances have declined sharply from £4.6k in 2022 to £1.4k in 2023, reflecting tightening liquidity. Debtors are minimal (£638) and unlikely to provide significant working capital relief. The company’s negative net current assets indicate reliance on short-term financing or creditor terms to sustain operations. The absence of an audit and limited disclosure on cash flow statements restricts detailed assessment, but the downward cash trend and current liabilities coverage raise concerns over immediate liquidity. Careful cash flow forecasting and covenant compliance reviews are essential.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to track working capital trends.
• Debt servicing: Interest and principal repayment coverage from operational cash flow.
• Asset valuations: Monitor property market conditions affecting fixed asset values and revaluation reserves.
• Profitability: Track P&L performance to reduce accumulated losses and rebuild equity.
• Compliance: Ensure timely filings and no breaches of loan covenants or defaults.
• Director conduct: No PSC or director disqualification flags noted, but ongoing governance oversight recommended.