Company Number: 12804250

Analysis Date: 2025-07-20 15:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cricket Green Properties Limited operates in the real estate sector with a property portfolio valued at approximately £5.57 million. The company shows positive net assets of £2.59 million, indicating a solid equity base. However, the company has significant long-term debt (£2.94 million) and current liabilities that exceed current assets, resulting in a negative working capital position. This liquidity strain presents a risk to short-term debt servicing. Approval is recommended with conditions that monitor cash flow closely and ensure the ongoing ability to meet current liabilities, especially given the heavy reliance on bank loans.

2. Financial Strength:
   The balance sheet is asset-rich, primarily due to investment property holdings, which have increased modestly by around £211k in the latest year, reflecting some growth or capital expenditure. Shareholders’ funds remain stable around £2.59 million, supported by share premium and retained profits. There is no evidence of impairment on property assets, which supports the valuation. However, the current liabilities significantly exceed current assets by about £36k, reflecting some short-term funding pressure. The long-term bank loan has increased slightly, indicating ongoing leverage at just over 50% of total assets less current liabilities, a moderate gearing level for a property company.

3. Cash Flow Assessment:
   Cash balances have declined from £9.9k to £7.6k year-on-year, and debtors have fallen sharply, suggesting tighter working capital management or reduced receivables. The company carries £45k in short-term creditors including a new director loan of £32k, which suggests some reliance on director financing to cover immediate obligations. Negative net current assets indicate potential liquidity constraints, meaning the company’s ability to meet short-term liabilities without refinancing or asset sales is limited. The relatively small cash buffer and high current liabilities warrant ongoing monitoring.

4. Monitoring Points:

• Liquidity ratios and working capital position, focusing on current assets vs current liabilities.
• Debt servicing capacity, particularly interest coverage and principal repayments on the £2.9 million bank loan.
• Valuation and occupancy/utilization of investment property assets to confirm ongoing income generation.
• Director loans and related party transactions to ensure no undue reliance on insider financing.
• Timely filing of accounts and returns (currently up to date).
• Any material changes in market conditions affecting real estate valuations or rental income.