CAVE PROPERTY MANAGEMENT LIMITED

Executive Summary

Cave Property Management Limited demonstrates slight improvement in financial position with positive net assets and modest working capital. However, liquidity remains tight with low cash reserves and reliance on debtor collections. Credit approval should be conditional with stringent monitoring of cash flow and receivables to mitigate risk. The company’s small scale and limited equity suggest careful credit exposure management is warranted.

CAVE PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13454147

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cave Property Management Limited is a relatively new and small private company operating in real estate management. The company shows a marginally positive net asset position and slight improvement in net current assets during the latest financial year. However, the absolute values are very low, indicating limited financial buffer. The company’s ability to service debt is currently adequate but constrained. Approval is recommended with monitoring and possibly restricted credit limits, considering the modest scale of operations and thin working capital.

2. Financial Strength:

• Net assets increased from £31 in 2022 to £1,199 in 2023, a positive sign but on a very low base.
• Fixed assets minimal at £332, showing limited capital investment.
• Current assets (~£10,286) slightly increased; however, cash balances declined from £4,701 to £2,161, reducing liquidity headroom.
• Current liabilities decreased from £10,211 to £9,419, slightly improving short-term obligations coverage.
• Overall shareholders' funds remain minimal, indicating low equity cushion against losses.

3. Cash Flow Assessment:

• Cash on hand is low (£2,161) relative to current liabilities (£9,419), indicating potential liquidity pressure.
• Debtors increased from £5,541 to £8,125, which may suggest slower collections or increased sales on credit; this ties up working capital.
• Net current assets positive but marginal (£867), pointing to limited working capital to absorb shocks or fund growth.
• No long-term debt reported, which reduces financial risk but also limits leverage for expansion.
• The company appears reliant on timely collection of receivables and tight control of payables to maintain liquidity.

4. Monitoring Points:

• Watch cash flow trends closely, especially cash balance relative to current liabilities.
• Monitor debtor ageing to ensure receivables are collected promptly.
• Keep an eye on creditors and tax liabilities, noting the previous year had high taxation and social security payables (£10,211), which reduced this year but should be managed carefully.
• Track any increases in fixed assets or capital expenditure that could strain liquidity.
• Review any changes in ownership or director appointments that could impact governance.
• Given the company’s small scale and recent incorporation, ongoing viability and growth trajectory require regular review.