COMPLETE PROPERTY MANAGEMENT SOLUTIONS LIMITED
Company number 05236404 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: COMPLETE PROPERTY MANAGEMENT SOLUTIONS LIMITED
1. Credit Opinion: CONDITIONAL APPROVE
The company demonstrates a strong and consistent growth trajectory over the past five years, with net assets increasing from £845 (2019) to £297,788 (2025). Cash reserves are robust at £640,489, comfortably exceeding current liabilities. However, the approval is conditional on clarification of the significant "other creditors" balances (£565,152 across current and long-term), which in residents' property management companies often represent service charge funds held on trust for leaseholders. If these are client monies rather than true obligations, the underlying financial position is substantially stronger than reported figures suggest. The company's 20-year trading history and consistent profitability provide additional comfort.
2. Financial Strength
Balance Sheet Summary (Year Ending 31 October 2025):
| Item | £ | Commentary |
|---|---|---|
| Fixed Assets | 113,360 | Motor vehicles (net £113,360) - fully depreciated plant |
| Current Assets | 956,090 | Strong - dominated by cash |
| Cash | 640,489 | 67% of current assets |
| Trade Debtors | 228,237 | Up 67% YoY - warrants monitoring |
| Current Liabilities | 567,662 | Includes £361,152 "other creditors" |
| Long-term Liabilities | 204,000 | Other creditors - nature unclear |
| Net Assets | 297,788 | Significant improvement from £845 in 2019 |
Key Ratios:
| Ratio | Value | Assessment |
|---|---|---|
| Current Ratio | 1.68x | Adequate liquidity |
| Quick Ratio | 1.68x | Strong (no inventory) |
| Cash/Current Liabilities | 1.13x | Cash alone services short-term debts |
| Total Gearing | 2.59x | Moderate - improving trend |
| Net Asset Growth (5yr) | 35,143% | Exceptional turnaround |
Trajectory Analysis: The financial trajectory is emphatically positive. Net assets have grown from near-zero in 2019 (£845) to nearly £300,000 in 2025. This represents retained profits accumulating in the business, demonstrating consistent profitability. The P&L reserve has grown from a deficit position historically to £297,784, indicating the business has transitioned from survival mode to value creation.
Concern - "Other Creditors": The combined "other creditors" of £565,152 (current £361,152 + long-term £204,000) represents 99.5% of total liabilities. For SIC code 98000 (Residents property management), this almost certainly represents service charge funds collected from leaseholders and held on trust. These are not debts of the company in the commercial sense. If excluded, the true net asset position is approximately £862,940 - a materially stronger position.
3. Cash Flow Assessment
Liquidity Position: Cash of £640,489 against current liabilities of £567,662 provides a cash coverage ratio of 1.13x. The company can meet all short-term obligations from cash reserves alone, without needing to convert debtors or other assets.
Working Capital: Net current assets of £388,428 represent a healthy working capital buffer. However, the composition warrants attention:
- Trade debtors growth: 67% increase YoY (£136,792 → £228,237) may indicate revenue growth but could signal slower collections
- Trade creditors: £51,374 (down from £57,054) - the company is paying suppliers promptly
- Taxation liability: £148,969 - substantial, indicating profitable trading
Cash Generation: Cash increased by £21,153 (£619,336 → £640,489) despite significant capital expenditure on motor vehicles (£48,041). This suggests strong operating cash generation, though the filleted accounts don't provide a full cash flow statement.
Debt Profile: - Bank loans (current): £6,167 - negligible - Bank loans (long-term): £nil (was £7,072 prior year) - effectively repaid - The company is essentially debt-free from a bank borrowing perspective
4. Monitoring Points
| Priority | Metric | Rationale | Threshold |
|---|---|---|---|
| High | Other Creditors Composition | Confirm these are service charge funds held on trust, not true liabilities | Must clarify |
| High | Trade Debtors Aging | 67% YoY increase - monitor for collection issues | Days Sales Outstanding trend |
| Medium | Revenue/Profit Figures | Filleted accounts don't show P&L - request management accounts | Quarterly review |
| Medium | Employee Growth Sustainability | Headcount grew 30% (27→35) - ensure revenue supports this | Revenue per employee |
| Low | Vehicle Fleet Investment | £48k additions in year - monitor capital commitments | Capex vs. depreciation |
| Low | Filing Compliance | Currently up to date - ensure continuation | Accounts filed within 9 months |
Sector Considerations: - Residents property management (SIC 98000) is typically recession-resistant - service charges are contractual obligations - Regulatory environment is tightening (Building Safety Act 2022) - monitor compliance costs - Client retention is typically high in this sector, providing revenue visibility
Management Quality Indicators: - ✅ 20-year continuous trading history - ✅ Accounts filed on time, no overdue filings - ✅ No director disqualifications recorded - ✅ Consistent profitability and retained earnings growth - ✅ Prudent leverage - minimal bank debt - ⚠️ No audit - small company exemption utilized - ⚠️ P&L account not delivered to Registrar (filleted accounts)