Company Number: 12580570

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Blenheim Property Services Group Ltd shows modest net asset positive equity but with consistent negative net current assets over the past three years, indicating working capital strain. The company relies heavily on long-term creditor funding (£118,764) and bank loans, which may challenge liquidity. The small equity base (£4,753) and minimal cash balance (£17,490) relative to current liabilities (£49,825) suggest limited financial flexibility. However, the business is active, with no overdue filings, and directors appear stable. Credit approval is conditional on continued close monitoring of liquidity and cash flow, with possible covenant or facility limits reflecting current working capital risk.

2. Financial Strength
   The company holds fixed tangible assets of £155,852 (land and buildings) unchanged over the last two years, reflecting some asset backing. However, net current liabilities persist around £32,000, driven by current liabilities exceeding current assets. Shareholders' funds have marginally decreased from £6,347 in 2023 to £4,753 in 2024, signaling limited retained earnings growth. The long-term creditor balance remains static at £118,764, showing reliance on external financing. Overall, the balance sheet is thinly capitalised with asset-backed security but working capital weakness.

3. Cash Flow Assessment
   Cash balances remain low (£17,490) relative to current liabilities (£49,825), yielding a liquidity coverage ratio below 0.5x, indicating potential short-term cash flow pressure. The company employs only one employee, suggesting minimal operating overheads, but the presence of director loans (£2,629) and bank overdraft (£40,000) implies dependency on external and director funding to meet short-term obligations. The negative net current assets trend over three years requires attention to ensure operational cash inflows improve or financing remains sustainable.

4. Monitoring Points

• Liquidity ratios, especially current ratio and quick ratio, to detect improvements or worsening in working capital
• Cash flow statements or management accounts to assess operating cash generation capacity
• Timely repayment of bank loans and director loans, with monitoring of covenant adherence if applicable
• Profit and loss trends once available to verify if the company moves towards profitability and equity growth
• Any changes in creditor terms or increases in short-term liabilities that could exacerbate liquidity risk
• Directors’ ability to inject further capital or restructure debt if cash flow deteriorates