CCL PROPERTY SVCS LTD

Executive Summary

CCL PROPERTY SVCS LTD, a recently incorporated micro-entity, currently exhibits a weak financial position with net liabilities and negative working capital. The company lacks operational history and cash flow evidence, raising concerns about its ability to service debt and withstand economic stress. Credit approval is not recommended until material improvements in liquidity and equity are demonstrated.

CCL PROPERTY SVCS LTD - Analysis Report

Company Number: 14681252

Analysis Date: 2025-07-29 12:32 UTC

1. Credit Opinion: DECLINE
   CCL PROPERTY SVCS LTD shows a negative net asset position of £27,306 as of its first year end (28 Feb 2024), with current liabilities exceeding current assets by £316,306. This indicates the company is currently insolvent on a balance sheet basis and reliant on external funding or shareholder support to meet short-term obligations. Given the absence of employees and limited trading history (incorporated in 2023), there is insufficient evidence of operational cash flow generation or financial resilience. The high level of creditors relative to assets presents a material risk of default on credit facilities. Without substantial improvement in working capital or equity injection, the company’s capacity to service debt is doubtful at this stage.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £289,000 but current liabilities of £572,769 dwarf current assets of £256,463, yielding a negative working capital position of -£316,306. The overall net liabilities of £27,306 reflect initial losses or shareholder loans not yet converted into equity. The company’s micro-entity status and lack of employees suggest it is in a startup phase, relying heavily on owner funding. The financial structure is weak and highly leveraged, with no retained earnings or reserves reported. This undermines the company’s ability to absorb financial shocks or downturns.

3. Cash Flow Assessment:
   No direct cash flow statement is available, but the negative net current assets and high liabilities imply strained liquidity. The absence of employees and limited trading history likely mean minimal operational cash inflow currently. The company’s ability to meet short-term obligations depends on continued funding from the owner or third parties. Working capital deficits pose a risk to creditor confidence and may restrict access to new credit facilities.

4. Monitoring Points:

• Track improvement in net current assets and overall net asset position in future filings.
• Monitor any capital injections or shareholder loans documented to support liquidity.
• Review turnover and profit generation to assess operational cash flow development.
• Watch for timely filing of accounts and confirmation statements as indicators of good governance.
• Observe any changes in director or ownership structure that could affect financial strategy.