Company Number: 14058998

Analysis Date: 2025-07-20 15:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Compair Crescent Ltd is an active private limited company operating in the real estate sector, specifically in letting and operating own or leased property. The company’s financials indicate a very high level of long-term liabilities (£1.225m) relative to its net assets (£1,241), reflecting significant gearing. The modest equity base and negative net current assets suggest tight liquidity. However, the company holds substantial investment property valued at £1.2m, which supports the balance sheet strength. Given the early stage of the company (incorporated 2022) and the current directors’ experience, credit approval may be granted subject to close monitoring of cash flow and debt servicing ability.

2. Financial Strength:
   The balance sheet shows fixed assets (largely investment property) carrying a value of £1.232m, which forms the core asset base. Current assets are minimal (£11.4k cash), and current liabilities are low at £17.3k, but there is a sizable portion of creditors due after one year (£1.225m). Net assets are very low at £1,241, down from £19,882 the previous year, indicating a reduction in retained earnings or reserves. Share capital is nominal at £100. The company’s gearing is high, with long-term liabilities nearly equalling the value of fixed assets. This exposes the company to refinancing risk. The company has no current bank overdrafts but does have a sizeable long-term bank loan (£720k).

3. Cash Flow Assessment:
   Cash on hand has decreased from £15.8k to £11.4k in the latest year, reflecting constrained liquidity. Net current assets remain negative but improved from the prior year. The company has no employees, implying limited operating expenses, but no reported income or profit figures were provided, making assessment of operating cash flow difficult. The large creditor balances due after one year suggest reliance on external financing rather than operational cash generation. Liquidity appears tight, and the company’s ability to service debt depends heavily on rental income or asset sales. Monitoring working capital management is essential.

4. Monitoring Points:

• Track cash flow forecasts and actual liquidity monthly to ensure timely debt servicing.
• Review rental income streams or alternative revenue generation to cover interest and principal repayments.
• Monitor asset valuations and any impairment risks due to market conditions in real estate.
• Observe any changes in directors or material corporate actions that may impact governance.
• Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Watch for any increases in short-term liabilities that could further strain working capital.