CRAMMOND PROPERTIES LTD

Executive Summary

Crammond Properties Ltd is a newly incorporated micro-entity with a negative net asset position due to creditor financing exceeding fixed assets. The company shows limited liquidity and no operational track record, posing high credit risk. Approval for credit facilities is not recommended until the company demonstrates improved financial strength and cash flow generation.

CRAMMOND PROPERTIES LTD - Analysis Report

Company Number: 14718134

Analysis Date: 2025-07-29 16:40 UTC

1. Credit Opinion: DECLINE
   Crammond Properties Ltd presents significant credit risk at this early stage of its operations. The company has a net liability position (£-1,727) driven by long-term creditors exceeding fixed assets, indicating negative equity. Current assets are insufficient to cover current liabilities on a prudent basis, and the company has no employees or operational history beyond incorporation in 2023. The financials show reliance on creditor financing, with negative net assets suggesting limited buffer against financial stress. Without evidence of cash flow generation or equity infusion, the company cannot currently service debt obligations reliably.

2. Financial Strength:
   The balance sheet reflects a micro-entity with total fixed assets of £389,616 largely offset by long-term creditors of £392,739, resulting in negative net assets. Current assets (£2,236) are minimal, and net current assets are positive but small (£1,396). Shareholders’ funds are negative, indicating the company’s liabilities exceed its assets. The capital structure is weak, with no accumulated reserves or retained earnings. This position implies very limited financial strength and inability to absorb adverse events or downturns.

3. Cash Flow Assessment:
   With no employees and negligible current assets, the firm’s liquidity position is very tight. The balance sheet shows current liabilities (£840) are low but the small cash or equivalents available are insufficient to demonstrate operational cash flow sufficiency. The significant long-term creditors suggest the company has borrowed or deferred payments to finance fixed assets but lacks operating cash flow to support working capital needs. Without operating revenue or cash flow data, the liquidity risk is high.

4. Monitoring Points:

• Review subsequent annual accounts for improvements in net assets and cash flow generation.
• Monitor changes in creditor levels and terms to assess refinancing risk.
• Watch for any equity injections or capital restructuring.
• Track operational development including revenue and employee growth.
• Verify timely filing of annual accounts and confirmation statements to ensure compliance.