Company Number: 13113678

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Buzzard Property Limited shows improving net assets and a rising investment property valuation, which supports its creditworthiness. However, the company has significant current liabilities exceeding current assets, resulting in negative working capital and tight liquidity. The large bank loan secured against investment property poses medium-term repayment risk. Approval is conditional on monitoring liquidity closely and ensuring timely servicing of short-term obligations.

2. Financial Strength:
   The company’s net assets increased substantially from £4,378 in 2023 to £56,404 in 2024, primarily due to a £65,954 upward revaluation of its investment property portfolio to £660,000. Shareholders’ funds remain modest at £56,404 against total liabilities over £667,000. The balance sheet is asset-heavy with most value tied in property, but current liabilities of £247,278 outweigh current assets (cash £80,638), resulting in net current liabilities of £166,640. Long-term bank loans of £420,467 are secured on the property, indicating leverage but with collateral.

3. Cash Flow Assessment:
   The company holds £80,638 in cash at year-end, a significant increase from prior years, improving its short-term liquidity position. Despite this, the negative working capital position indicates reliance on external financing or asset sales to cover short-term obligations. Absence of profit and loss data limits cash flow visibility, but revaluation gains do not generate cash. The company should maintain positive operating cash flow and manage creditor payments carefully.

4. Monitoring Points:

• Liquidity trends: monitor cash reserves and net current assets closely.
• Debt servicing: ensure bank loan interest and principal payments are met punctually.
• Property valuations: track market conditions as property values significantly impact net worth.
• Profitability and cash generation: obtain future financial statements including P&L to assess operational performance.
• Director’s management of working capital and creditor relationships.