CREHAN DEVELOPMENTS LTD

Executive Summary

Crehan Developments Ltd demonstrates growth in fixed assets but continues to carry negative net assets and limited liquidity, signaling financial vulnerability. Conditional credit approval is advised, contingent on stringent monitoring of debt levels, cash flows, and asset realizability to mitigate repayment risk. The company’s financial trajectory requires cautious oversight given its reliance on long-term liabilities and minimal working capital.

CREHAN DEVELOPMENTS LTD - Analysis Report

Company Number: 12453925

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Crehan Developments Ltd is an active micro-entity operating in property development with a recent increase in fixed assets but continued negative net assets. The company shows significant long-term liabilities exceeding total assets, resulting in shareholder deficit. While the business is expanding its asset base (from £238k to £409k fixed assets), the negative equity position and persistent net liabilities highlight financial vulnerability. Credit approval should be conditional on close monitoring of asset performance and debt servicing capability, with limits set to avoid overextension.

2. Financial Strength:
   The company’s balance sheet reflects growth in fixed assets from £238k (2023) to £409k (2024), indicating investment in property or development projects. However, net current liabilities increased slightly from £608 to £2,881, and long-term creditors rose from £264k to £423k, pushing net assets further negative from -£26.5k to -£16.6k. The persistent negative shareholders' funds and growing long-term debt suggest financial stress, though the improved net liability position from prior years is a positive sign. The minimal current assets (£54) versus liabilities indicate weak liquidity buffer.

3. Cash Flow Assessment:
   Current assets are negligible and consist mainly of minimal cash or receivables (£54), with current liabilities slightly below £3k, yielding a small negative working capital. This indicates limited short-term liquidity and working capital to cover immediate obligations. There is no evidence of significant cash reserves or operational cash flow from the data provided. The company appears reliant on long-term financing and asset sales or development completions to generate cash flow, which may be risky if projects are delayed or market conditions deteriorate.

4. Monitoring Points:

• Track changes in net assets and shareholders’ funds to assess if equity position improves.
• Monitor long-term creditor levels and repayment schedules to ensure sustainable debt servicing.
• Watch liquidity ratios closely, especially current asset and liability fluctuations.
• Review asset valuations and realizability, given the high fixed asset concentration.
• Management effectiveness in controlling costs and project delivery timelines.
• Timely filing of accounts and confirmation statements to avoid regulatory issues.