CMBE PROPERTY LIMITED

Executive Summary

CMBE PROPERTY LIMITED shows a stable asset base primarily in real estate but is highly leveraged with long-term debt significantly exceeding equity. The company maintains adequate liquidity for its current obligations but depends on long-term debt repayment capacity. Conditional credit approval is advised, subject to ongoing monitoring of cash flow, debt servicing, and asset valuation.

CMBE PROPERTY LIMITED - Analysis Report

Company Number: 12972478

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CMBE PROPERTY LIMITED is a micro-entity operating in real estate investment (SIC 68100). The company has a solid fixed asset base (£499k) but shows very high long-term liabilities (£456k) relative to equity (£81k) and minimal current liabilities. While the company is not overdue on filings and remains active, the heavy leverage and minimal liquidity pose credit risk. Approval is conditional on close monitoring of cash flow and debt servicing capability, ideally supported by additional security or guarantees.

2. Financial Strength:
   The company’s balance sheet is asset-heavy with fixed assets of £499,000 consistently reported over the last three years. Shareholders’ funds have grown modestly from £64k in 2020 to £81k in 2024, indicating slight equity buildup. However, the company carries significant debt with creditors due after one year totalling approximately £456k, which is more than five times shareholders’ funds. Current assets remain low (£45,827), largely cash or equivalents, with very limited current liabilities (£3,540), suggesting minimal working capital needs but also minimal liquidity cushion.

3. Cash Flow Assessment:
   Cash balances have risen from £11,817 in 2020 to £45,827 in 2024, showing some improvement in liquidity. However, net current assets are not explicitly positive, and the company’s current liabilities are small, implying limited short-term obligations. The main debt is long-term, suggesting that the company’s repayment burden is structured over time. Without detailed P&L or cash flow statements, it is difficult to confirm operational cash flow adequacy. The absence of employees and small scale imply low operating costs, but the company’s ability to service long-term liabilities depends heavily on property sale or rental income, which is not detailed.

4. Monitoring Points:

• Debt servicing: Monitor interest payments and principal repayment schedules on the long-term liabilities (£456k).
• Liquidity: Watch current asset trends vs. current liabilities to ensure ongoing working capital sufficiency.
• Equity growth: Track shareholder funds to see if retained profits increase to strengthen the capital base.
• Property valuation: Updates on fixed asset valuations or impairments affecting collateral value.
• Director changes: Note recent resignations (Dec 2024) and management stability given the small team.