CROCMORE PROPERTIES LTD

Executive Summary

CROCMORE PROPERTIES LTD is a micro-entity property holding company with modest equity and significant current liabilities relative to liquid assets, indicating potential short-term liquidity pressure. While fixed assets provide collateral, the company's ability to service debt depends on stable rental income or refinancing. Credit approval is conditional on further verification of cash flow sufficiency and ongoing financial monitoring.

CROCMORE PROPERTIES LTD - Analysis Report

Company Number: NI682660

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

CROCMORE PROPERTIES LTD demonstrates a positive net asset position and an improving equity base, suggesting some financial stability. However, the company’s micro-entity size, lack of employees, and relatively thin net assets (£31,459 as of 2024) indicate limited operational scale and financial resilience. The significant current liabilities (£501k) substantially exceed current assets (£45.5k), resulting in a materially negative net current assets position (-£455.5k), which raises liquidity concerns. Given these factors, credit approval is conditional upon thorough review of debt servicing arrangements and confirmation of stable rental income or asset cash flow supporting liabilities.

2. Financial Strength:

The balance sheet shows fixed assets valued around £487k, likely real estate holdings given the SIC codes related to property letting and sales. Net assets have improved from £12k in 2023 to £31k in 2024, indicating modest equity growth. However, current liabilities (~£501k) greatly exceed current assets (~£45.5k), resulting in a negative working capital position if net current assets are considered alone, but the reported net current assets figure is negative (-£455,528), highlighting a short-term liquidity mismatch. The company's financial footprint remains small and heavily leveraged, typical of property holding entities financed by debt.

3. Cash Flow Assessment:

No employees and no reported operational turnover suggest the company relies solely on property income or asset disposals for cash flow. The large current liabilities and limited current assets imply tight liquidity, with risk that short-term obligations may exceed available liquid resources. Since accounts do not show profit and loss details, it is critical to confirm reliable rental income or refinancing capability to meet liabilities. The absence of audit and limited disclosures increase uncertainty around cash flow robustness.

4. Monitoring Points:

• Regular review of rental income streams and tenant occupancy to ensure consistent cash inflows.
• Monitoring of current liabilities maturity profile and any refinancing or repayment plans.
• Track net asset trends to identify any erosion or improvement in equity cushions.
• Watch for changes in property market conditions affecting asset valuations.
• Verify no overdue filings or director changes indicating governance or compliance risks.