BODEN PROPERTIES LIMITED

1. Credit Opinion: DECLINE The credit application should be declined on a standalone basis due to severe insolvency and a critical lack of liquidity. Boden Properties Limited has sustained consecutive years of losses, resulting in deeply negative shareholders' funds of £-418,866 and net liabilities of £-366,673 as of July 2025. The company is entirely reliant on the forbearance of its creditors—specifically group undertakings and other related parties—to continue trading. Without explicit, legally binding guarantees from the parent company, Boden Group Holdings Limited, the standalone risk of default is exceptionally high.

2. Financial Strength The company's balance sheet is fundamentally impaired. Net assets have been negative for at least a decade, deteriorating from £-50,834 in 2016 to £-366,673 in 2025. The P&L reserve shows accumulated losses of £418,866, entirely wiping out the modest share capital (£1,000) and revaluation reserve (£51,193).

The asset base is contracting. Investment property—the firm's primary asset—was reduced from £420,000 to £240,000 in the latest period via a £180,000 disposal, and tangible fixed assets were fully depleted. Total assets fell from £762k in 2020 to just £256k in 2025. The company is technically balance-sheet insolvent, and its continued existence depends heavily on the financial strength and willingness of its parent entity, Boden Group Holdings Limited, to support it.

3. Cash Flow Assessment The company is experiencing a severe liquidity crisis. It holds only £10,566 in cash against current liabilities of £622,851, resulting in net current liabilities of £-606,823. The current ratio is virtually zero, indicating an absolute inability to meet obligations as they fall due from organic cash flows.

The liability structure is dominated by "Amounts owed to group undertakings" (£211,010) and "Other creditors" (£379,307). While group debts may be subordinated or informally deferred, the £379k in other creditors poses a significant threat to operational continuity if demanded. The sale of £180k in investment property during the year did little to alleviate the overall debt burden, suggesting cash was likely absorbed by operating losses or transferred within the group.

4. Monitoring Points If credit is extended based on a parent company guarantee, the following metrics require strict ongoing monitoring: * Group Support: Formal confirmation of parent company support (e.g., a comfort letter or guarantee) and the financial health of Boden Group Holdings Limited. * Creditor Forbearance: Any demand for repayment from the £379,307 owed to "other creditors" would likely force the company into administration. * Asset Realisations: Monitor the remaining £240,000 investment property. Any further disposals without a clear plan to settle liabilities will further erode the already minimal asset base. * Cash Position: The cash balance is dangerously low. Any unexpected expenditure or delay in group funding will result in immediate insolvency.