COBBERTS PROPERTY INVESTMENTS LIMITED

Executive Summary

Cobberts Property Investments Limited is financially distressed with negative net assets and insufficient liquidity to meet current liabilities, primarily due to heavy debt financing of property assets. The company’s financial structure and cash flow position indicate a high credit risk with limited capacity to service debt. Without significant capital restructuring or improvement in cash flows, credit facilities are not advisable at this time.

COBBERTS PROPERTY INVESTMENTS LIMITED - Analysis Report

Company Number: 12819842

Analysis Date: 2025-07-20 11:36 UTC

1. Credit Opinion: DECLINE
   Cobberts Property Investments Limited exhibits significant financial distress, with persistent negative net assets and net current liabilities over several years. The company’s liabilities, particularly long-term creditors at £679,770, substantially exceed its total assets, leading to a negative shareholders’ equity of £25,647 as of the latest accounts. The minimal cash balance (£14) is insufficient to cover short-term obligations (£86,110 current liabilities), indicating poor liquidity. Without evidence of positive cash flow or capital injection, this company currently lacks the financial resilience and capacity to service debt commitments reliably.

2. Financial Strength:
   The company’s balance sheet shows a large increase in tangible fixed assets (£740k), likely from property acquisitions, but these are financed primarily by debt, resulting in negative net assets. The company has no retained earnings and a negative profit and loss reserve, evidencing cumulative losses or expenses exceeding income. The high gearing ratio, with creditors exceeding assets, signals weak financial stability. The absence of depreciation on freehold buildings is standard but does not offset the underlying solvency concerns.

3. Cash Flow Assessment:
   Current assets are almost exclusively cash, which is negligible (£14), and there are no disclosed receivables or stock to support working capital. Current liabilities exceed current assets by £86,096, showing a working capital deficit that compromises the company’s ability to meet short-term liabilities. The company’s cash flow position appears tight, with no buffers to absorb operational or financial shocks. This increases the risk of default if creditors demand repayment or if unexpected expenses arise.

4. Monitoring Points:

• Track changes in net current assets and cash balances to evaluate improvements in liquidity.
• Monitor any reduction in creditor balances or refinancing that might alleviate financial pressure.
• Review subsequent filings for profit generation or capital injections to strengthen equity.
• Assess any changes in ownership or director conduct that might affect credit risk.
• Watch for overdue filings or signs of insolvency proceedings.