CM8 PROPERTIES LIMITED

Executive Summary

CM8 Properties Limited operates with significant fixed assets but suffers from negative equity and a working capital deficit, raising liquidity concerns. While the tangible assets provide some security, the company’s ability to meet short-term liabilities and generate positive cash flow remains uncertain. Credit extension is recommended only with conditions focused on close monitoring and secured lending arrangements.

CM8 PROPERTIES LIMITED - Analysis Report

Company Number: 13929769

Analysis Date: 2025-07-29 20:09 UTC

Credit Opinion:
CONDITIONAL APPROVAL. CM8 Properties Limited shows ongoing negative net assets and net current liabilities, indicating balance sheet weakness and potential liquidity risk. However, the company holds significant fixed assets (property) that could provide collateral support. Credit should be extended cautiously and with conditions such as regular covenant monitoring and possibly secured lending. The directors appear committed but the company’s ability to service short-term liabilities from operational cash flow is constrained.

Financial Strength:
The company has net liabilities of £23,399 as of March 2025, with shareholders’ funds negative by the same amount. Despite this, tangible fixed assets stand at approximately £349k, representing the majority of the asset base. Current liabilities are high at circa £210k against minimal cash balances and negative net current assets of £162k, signaling working capital deficiency. The company has shown marginal improvement in net liabilities from previous years but remains in a weak equity position. The property assets provide some security buffer but the impairment risk and potential volatility in real estate values should be considered.

Cash Flow Assessment:
Cash increased to £27,912 from £14,264 a year prior, showing some positive movement in liquid resources. However, current liabilities remain at £210,000, significantly exceeding current assets, which results in a negative working capital position. The company may face challenges meeting near-term obligations without additional financing or asset disposals. The absence of a profit and loss statement limits insight into operational cash generation, but negative reserves and ongoing losses are implied. Active cash flow management and possibly restructuring of short-term liabilities will be critical.

Monitoring Points:

• Quarterly review of cash flow forecasts and liquidity position.
• Monitoring of property valuations and potential impairments.
• Watch for any deterioration in working capital ratios or increase in current liabilities.
• Directors’ adherence to financial covenants and timely filing of accounts and returns.
• Assessment of any related party transactions or changes in ownership/control that could affect credit risk.