BELLE WALK PROPERTIES LTD

Executive Summary

Belle Walk Properties Ltd demonstrates growth in asset base and equity but faces significant short-term liquidity challenges due to negative working capital and high gearing. Credit may be extended on a conditional basis with careful monitoring of cash flow, debt servicing, and director funding support. The company’s real estate assets provide underlying strength, but operational cash flow constraints must be managed prudently.

BELLE WALK PROPERTIES LTD - Analysis Report

Company Number: 13171749

Analysis Date: 2025-07-29 17:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Belle Walk Properties Ltd is an active private limited company operating in the real estate sector, specifically letting and buying/selling of own properties. The company shows growth in fixed assets and net assets over the last three years, indicating asset base expansion. However, it currently reports negative net current assets (£-108k) due to higher short-term liabilities compared to current assets, which signals potential short-term liquidity pressure. Long-term liabilities (bank loans of £460k) are significant relative to net assets (£54k), which may constrain financial flexibility. Directors’ advances show some internal funding but also repayments. Given the company's growth trajectory and asset base, credit can be considered with caution, conditional on monitoring liquidity and servicing capability.

2. Financial Strength: The balance sheet shows a rise in investment property value from £360k to £630k in the latest year, reflecting capital investment and possible appreciation. Shareholder funds increased from £42k to £54k, moving from a prior negative position, demonstrating improving equity. However, the company’s working capital position is weak with a net current liability position of £108k as of 31 March 2024, compared to a positive £40k the previous year. Current liabilities increased substantially (from £52k to £188k), largely driven by other creditors. The company is leveraged with long-term bank loans of £460k, which are nearly nine times the equity base, indicating high gearing. The fixed asset base is strong but largely illiquid, impacting the ability to cover short-term obligations.

3. Cash Flow Assessment: Cash at bank is low (£3,368), and debtors stand at £76k, which may take time to convert to cash. The mismatch between current assets and current liabilities flags potential short-term cash flow constraints. The increase in short-term creditors to £188k and the negative net current assets suggest the company may rely on either refinancing or director support to meet immediate obligations. The director advances indicate some internal resource support, but this is limited. The absence of the income statement in filings restricts detailed cash flow analysis, but the financial structure points to tight liquidity.

4. Monitoring Points:

• Liquidity and working capital position: Watch for improvements in current assets relative to current liabilities.
• Debt servicing: Monitor bank loan repayments and interest coverage, given high leverage.
• Director advances and related party transactions: Track reliance on internal funding.
• Property valuations and market conditions: Real estate asset values impact collateral and net worth.
• Timely filing of accounts and confirmation statements: No overdue filings currently, maintain compliance.