CBS PROPERTIES (NORWICH) LIMITED

Executive Summary

CBS PROPERTIES (NORWICH) LIMITED shows marginal net asset improvement but remains financially fragile with significant negative working capital and liquidity concerns. The company’s fixed assets provide some security, but current liabilities heavily outweigh current assets, raising repayment risks. Without stronger cash flow or capital support, credit exposure is not advisable at this stage.

CBS PROPERTIES (NORWICH) LIMITED - Analysis Report

Company Number: 13816176

Analysis Date: 2025-07-20 14:07 UTC

1. Credit Opinion: DECLINE. CBS PROPERTIES (NORWICH) LIMITED is an active private limited company classified as a micro entity, operating in real estate management and property dealing. The company’s latest accounts show marginal net assets of £9,835 as of 31/12/2023, which is a slight improvement from negative equity in prior years. However, the company exhibits significant net current liabilities (-£484,005) indicating working capital deficiencies and negative liquidity. The fixed assets of £494,265 (likely property holdings) provide some collateral value, but the company’s ability to service short-term obligations is weak. The directors have not provided an audit, and no information on profitability or cash flow generation is available, increasing risk. Given the negative working capital trend and minimal equity buffer, the company is currently not a strong candidate for credit without substantial security or guarantees.

2. Financial Strength: The balance sheet shows heavy reliance on liabilities due within one year (£502,490) against very limited current assets (£18,485). This results in a negative net current asset position, which poses refinancing and liquidity risk. The fixed assets are stable but do not offset short-term funding pressures. Net assets are positive but marginal at £9,835, improving from negative shareholders’ funds in earlier years, indicating some progress but still fragile financial health. Overall, the financial strength is weak, with potential solvency concerns if liabilities crystallize or asset values fall.

3. Cash Flow Assessment: Cash balances are very low (£18,485 was total current assets, with only £4,215 cash in 2022), and current liabilities significantly exceed current assets. This suggests the company may struggle to meet immediate payment obligations without refinancing or capital injection. The negative working capital implies ongoing liquidity constraints, and no evidence of positive operating cash flow is available. The company’s financial structure indicates poor short-term cash flow resilience.

4. Monitoring Points:

• Track changes in net current assets and cash balances quarterly to detect improvement or deterioration in liquidity.
• Monitor any changes in fixed asset valuations or disposals that might impact collateral value.
• Review management’s ability to reduce current liabilities or secure long-term financing.
• Observe any changes in directors or significant control that might affect company governance and financial stewardship.
• Watch for timely filing of future accounts and confirmation statements to assess compliance and corporate governance.