CUNNINGHAM PROPERTY AND INVESTMENTS LTD

Executive Summary

Cunningham Property and Investments Ltd shows improving net asset value driven by investment property appreciation but faces significant short-term liquidity challenges with current liabilities substantially exceeding current assets. Conditional credit approval is recommended contingent on close monitoring of cash flow and working capital management. The company’s small equity base and working capital deficit present some risk but the investment property provides a tangible asset base.

CUNNINGHAM PROPERTY AND INVESTMENTS LTD - Analysis Report

Company Number: 12846530

Analysis Date: 2025-07-20 15:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Cunningham Property and Investments Ltd is an active private limited company engaged in property letting and investment, with a modest but improving net asset base. The company’s balance sheet shows growth in net assets and an increase in investment property valuation, indicating progress. However, it carries significant current liabilities exceeding current assets, resulting in negative working capital. This liquidity pressure raises concerns about the company’s short-term ability to meet obligations without refinancing or cash inflows. Approval is recommended subject to monitoring cash flow closely and assurances on how the company manages its current liabilities.

2. Financial Strength: The company’s financial strength is moderate. Net assets increased from £9,003 in 2023 to £16,687 in 2024, primarily driven by an investment property revaluation from £60,000 to £104,358. Shareholders’ funds are positive but small (£16,687), reflecting a small equity base with only £200 in share capital. The company’s fixed assets (investment properties) form the majority of its asset base, which can be considered relatively illiquid. Current liabilities are high (£105,482) relative to current assets (£19,064), resulting in a net current liability position of £86,418. The company is classified as a small entity with no employees, indicating limited operational scale.

3. Cash Flow Assessment: Cash at bank improved to £19,064 from £7,293 the prior year, a positive sign for immediate liquidity. However, current liabilities are over five times the cash and current assets combined, indicating a working capital deficiency. There are no reported debtors, so no near-term cash inflows from trade receivables. The company’s ability to generate sufficient cash flow to cover short-term liabilities is uncertain and likely depends on property rental income or refinancing. The absence of an income statement limits insight into operational cash flow or profitability.

4. Monitoring Points:

• Liquidity position and working capital ratio: watch for any deterioration in current assets vs current liabilities.
• Property valuation trends: observe if investment property values sustain or decline, affecting net asset value.
• Payment history on short-term creditors to assess if working capital stress leads to payment delays or defaults.
• Any increase in borrowings or refinancing arrangements impacting debt servicing capacity.
• Director’s plans or disclosure of cash flow management and business strategy to improve liquidity.