CAPE OF GOOD HOPE PROPERTY SERVICES LTD

Executive Summary

Cape of Good Hope Property Services Ltd is a micro-entity with a small asset base and very limited equity, operating in real estate management. The company’s financial structure shows tight liquidity and high leverage, suggesting constrained repayment capacity. Credit approval is possible on a conditional basis with close monitoring of cash flows, working capital, and equity trends to mitigate risk.

CAPE OF GOOD HOPE PROPERTY SERVICES LTD - Analysis Report

Company Number: SC718517

Analysis Date: 2025-07-20 18:25 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Cape of Good Hope Property Services Ltd is a very small micro-entity operating in real estate management and letting. While it maintains active status and timely filings, the company shows very limited equity and net assets, with a net asset base of just £599 as of 31 December 2023. The high level of long-term creditors (£131,271) relative to assets and low liquidity position suggest tight financial flexibility. Approval could be granted for modest credit facilities, provided there is ongoing monitoring and possible security or personal guarantees given the constrained capital structure.

Financial Strength:
The balance sheet is characterized by modest fixed assets (£187k) representing real estate holdings, but current assets are low (£3,802), and current liabilities are significant (£58,979), resulting in negative net current assets of around £55k. Long-term liabilities (£131,271) nearly equal the value of fixed assets, leaving net assets nearly negligible at £599 and shareholders’ funds similarly low. The company’s financial position is therefore fragile, with minimal equity buffer and a high gearing level. This raises concerns about solvency under stress or unexpected downturns.

Cash Flow Assessment:
The company’s current asset base is very limited, implying low cash and receivables availability. Negative net current assets indicate working capital deficits, which could pressure short-term liquidity and ability to meet immediate obligations without reliance on external funding or owner support. The increase in average employees from zero to two in 2023 also suggests some operational scaling which may add to cash flow demands. Without detailed cash flow statements, liquidity risk appears elevated given the thin capital base and creditor profile.

Monitoring Points:

• Net asset level and equity movements in future accounts to detect further erosion or improvement
• Management of current liabilities and creditor payment terms to avoid liquidity strain
• Operating performance and cash flow generation to support debt servicing capacity
• Any changes in ownership or director involvement that might impact financial stewardship
• Timely submission of filings to maintain transparency and compliance