Company Number: 13598080

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: DECLINE
   CTI Property Group Ltd exhibits significant financial stress. The company has persistent negative net assets and shareholders' funds, declining from -£8,496 in 2021 to -£20,279 in 2024, indicating accumulated losses and erosion of equity. Current liabilities substantially exceed current assets, resulting in a large negative working capital position (-£49,207 in 2024). The company’s ability to service debt is questionable given the high level of secured bank loans (£74,563) relative to the fair value of investment properties (£103,144), especially with declining asset values and limited liquidity. There is no evidence of profitability or cash flow generation to support debt repayments, rendering new credit facilities high risk.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Fixed assets, primarily investment properties, decreased in value by £75,894 from 2023 to 2024, reflecting disposals or market depreciation. Current assets are minimal (£2,187) and largely cash (£1,716). The company carries substantial secured debts, with long-term bank loans at £74,563 and current liabilities at £51,394, exceeding liquid assets. Negative shareholders’ funds and recurring losses indicate poor financial resilience and a reliance on external funding. The capital base is inadequate to absorb further losses, and asset coverage over debt is marginal at best.

3. Cash Flow Assessment:
   Liquidity is severely constrained. Cash balances are low and have decreased from £2,110 (2023) to £1,716 (2024). Negative net current assets imply working capital deficits, signaling potential difficulty in meeting short-term obligations. There is no disclosure of operating cash flows, but the lack of improvement in current asset levels and ongoing high creditor balances suggest cash flow from operations is insufficient. The company’s ability to generate positive cash flow to service debt or fund operations is doubtful without additional capital injection or asset sales.

4. Monitoring Points:

• Watch for further declines in fair value of investment properties and asset disposals impacting collateral value.
• Monitor liquidity ratios, particularly current ratio and cash flow from operations, for signs of improvement or deterioration.
• Track changes in secured lending balances and any restructuring or covenant breaches.
• Review profitability trends and any capital injections or refinancing actions by shareholders or lenders.
• Watch for overdue filings or director changes that might indicate operational or governance issues.