BELGRAVIA APARTMENTS LTD

Executive Summary

Belgravia Apartments Ltd shows consistent negative net assets and working capital deficits, indicating poor financial health and liquidity stress. The company’s balance sheet weakness and limited equity base undermine its capacity to support additional credit. Without clear improvement, the risk of default on new credit facilities remains high, leading to a recommendation to decline credit at this time.

BELGRAVIA APARTMENTS LTD - Analysis Report

Company Number: 12622066

Analysis Date: 2025-07-20 19:03 UTC

1. Credit Opinion: DECLINE
   Belgravia Apartments Ltd exhibits persistent negative net assets and net current liabilities over the past four years, indicating ongoing financial distress and insufficient capital to cover short-term obligations. The negative equity position has deteriorated from a positive £64,739 in 2020 to a significant deficit of £22,873 in 2024. This erosion of shareholder funds signals recurring losses or write-downs without evident recovery. The micro-entity status and limited fixed assets also suggest limited collateral value. Without clear evidence of profitable operations or capital injection, the company’s ability to service new credit facilities is doubtful, warranting a decline of credit application.

2. Financial Strength:
   The balance sheet shows very weak financial strength. Fixed assets are minimal (£2,501 in 2024), and current liabilities substantially exceed current assets by £22,872, resulting in negative working capital. The total net liabilities position further confirms insolvency concerns. The trend from 2020 to 2024 demonstrates a steady decline in net assets and worsening liquidity, with no signs of improvement or financial restructuring. The limited share capital (£120) and negative reserves reflect insufficient equity support.

3. Cash Flow Assessment:
   Current assets at £13,903 are insufficient to cover short-term liabilities of £36,965, indicating liquidity issues and potential cash flow strain. Negative net current assets imply the company may face difficulties meeting immediate obligations without external funding or operational cash inflows. The absence of detailed profit and loss data limits analysis of operational cash generation, but the balance sheet alone suggests weak working capital management and cash flow constraints.

4. Monitoring Points:

• Monitor the company’s liquidity position, particularly current assets vs current liabilities ratios in future filings.
• Watch for any capital injections or restructuring plans that could improve equity and solvency.
• Review upcoming profit and loss disclosures for evidence of operational profitability or continuing losses.
• Track directors’ management actions and any changes to business strategy that could mitigate financial risks.
• Watch for any overdue filings or changes in company status that might indicate worsening financial health.