CURZON POINT LIMITED

Executive Summary

Curzon Point Limited is a newly formed entity with a strong fixed asset base but a significant working capital deficit driven by large short-term related party liabilities. Liquidity is severely constrained, and cash flow appears dependent on related party support, posing a high credit risk. Without evidence of improving cash flow or restructuring of liabilities, credit approval is not advisable at this time.

CURZON POINT LIMITED - Analysis Report

Company Number: 14760844

Analysis Date: 2025-07-19 12:06 UTC

Credit Opinion:
DECLINE. Curzon Point Limited shows significant liquidity and working capital concerns with net current liabilities of approximately £6.45 million against current assets of only £113k. The large short-term creditor balance, primarily amounts owed to related parties (£6.4 million), creates a high risk of repayment stress. The company is newly incorporated (2023) and despite owning tangible fixed assets of £6.79 million, the imbalance between current liabilities and assets is substantial. Without clear evidence of cash flow generation or third-party financing, the risk of default or reliance on related party support is high. Therefore, credit approval is not recommended at this stage.

Financial Strength:
The balance sheet shows total fixed assets of £6.79 million (mainly land and buildings), offset by current liabilities of £6.57 million, resulting in net current liabilities of £6.45 million. Shareholders’ funds stand at a modest £332k, reflecting initial capital plus retained earnings from a very short trading period. The company’s capital structure is heavily reliant on short-term related party borrowings, which may not be sustainable if these parties withdraw support. No long-term debt or reserves are evident, indicating a fragile financial position with limited buffer against financial shocks.

Cash Flow Assessment:
Cash at bank is £71,919, which is insufficient to cover near-term liabilities of over £6.5 million. Debtors total only £41,116, also insufficient to alleviate short-term cash demands. The working capital deficit indicates poor liquidity and potential cash flow strain. Given the current liabilities are mostly owed to related parties, the company’s operational cash flow is likely dependent on continued related party funding rather than independent revenue generation. This raises concerns about the company’s ability to meet debt service obligations without external financial support.

Monitoring Points:

• Monitor changes in current liabilities, especially related party balances, to assess if these are being converted to longer-term financing or repaid.
• Watch cash balances and cash flow from operations closely to detect any liquidity improvements or deterioration.
• Review subsequent filings for income statement data when available to evaluate profitability and cash generation capacity.
• Track any new financing arrangements or equity injections that could strengthen the balance sheet and liquidity position.
• Observe directors’ actions and business strategy for indications of financial discipline and sustainability.