CROSS AND CO. PROPERTIES LTD

Executive Summary

Cross and Co. Properties Ltd is a regionally focused real estate investment and agency firm exhibiting strong asset growth through property acquisitions and revaluations. While the company operates with significant leverage typical of the sector, it faces liquidity challenges common in property businesses managing short-term liabilities. Favorable local market conditions and experienced ownership position it well within its niche, though prudent financial management remains critical amid rising interest rates and regulatory pressures.

CROSS AND CO. PROPERTIES LTD - Analysis Report

Company Number: 12412576

Analysis Date: 2025-07-29 17:30 UTC

1. Industry Classification
   Cross and Co. Properties Ltd operates primarily in the real estate sector, with its SIC codes indicating activities in real estate agencies (68310), buying and selling of own real estate (68100), and letting/operating of owned or leased real estate (68209). This sector is characterized by capital-intensive asset management, property valuation fluctuations, reliance on financing structures, and sensitivity to macroeconomic factors such as interest rates, housing demand, and regulatory changes.

2. Relative Performance
   Financially, Cross and Co. Properties Ltd is a private limited company with a focus on property investment and management. The company’s fixed assets, largely investment properties, grew substantially from £943k in 2021 to approximately £2.51M as of January 2024, reflecting active property acquisitions and revaluation gains (£408k revaluation uplift in the latest year). However, the company carries significant debt, with long-term bank loans of £1.58M, resulting in net assets of £758k. The net current liabilities indicate short-term liquidity pressure, a common occurrence in real estate firms managing cash flows between tenant receivables and debt servicing. Compared to typical small to medium real estate companies, Cross and Co. shows solid asset growth but relatively high gearing, which is not unusual given the sector’s leverage norms.

3. Sector Trends Impact
   The UK real estate market, particularly in Wales and the North West where the company is based, has faced mixed trends recently. Rising interest rates have increased borrowing costs, putting pressure on highly leveraged companies. However, residential and commercial property values have generally shown resilience, with some regions experiencing price growth due to supply constraints. The company’s revaluation gains suggest it benefits from favorable local market conditions. Additionally, trends towards property rental and letting have remained strong, supporting recurring income streams. Regulatory scrutiny on landlord obligations and energy efficiency standards may increase operational costs but also create opportunities for value enhancement.

4. Competitive Positioning
   Cross and Co. Properties Ltd is a niche player focused on local property markets in North Wales and Cheshire, as indicated by previous company names and its property portfolio. It is not a market leader on a national scale but appears well-positioned regionally with an expanding asset base. Strengths include experienced directors with full control, a growing property portfolio with revaluation uplifts, and access to secured financing. Weaknesses include relatively high financial leverage and short-term current liabilities exceeding current assets, which could pose cash flow risks if not managed prudently. Compared to typical small private real estate firms, the company’s financial structure shows aggressive growth but also typical sector risks related to debt servicing and market volatility.