Company Number: 12475708

Analysis Date: 2025-07-20 15:47 UTC

1. Credit Opinion: DECLINE
   CWY Property Ltd demonstrates significant liquidity and working capital concerns. The company has persistent and substantial net current liabilities exceeding £1.2 million in both 2023 and 2024, indicating an inability to cover short-term obligations from current assets. Despite positive net assets driven by investment property valued at over £1.29 million, the absence of independent valuation, minimal cash reserves (£1,012 in 2024), and growing current liabilities (£1.29 million in 2024) raise concerns around cash flow sufficiency. The company’s trading history since 2020 shows no meaningful improvement in liquidity, and the small equity base (£100 share capital) offers limited buffer. Without evidence of increasing cash generation, credit extension is not advisable.

2. Financial Strength:
   The balance sheet is heavily leveraged on investment property valued at £1.29 million, which constitutes the primary asset. However, current liabilities dwarf current assets by a factor of approximately 50 (net current liabilities of -£1.26 million), signaling poor short-term financial health. The modest increase in net assets from £11,700 in 2023 to £27,712 in 2024 is primarily due to property revaluation gains rather than operational profitability or improved liquidity. The company’s equity remains low, and negative working capital reflects reliance on creditor funding or potential refinancing risk. The lack of independent valuation of investment property introduces uncertainty about asset realizability.

3. Cash Flow Assessment:
   Cash at bank is minimal (£1,012), down from £6,708 in the previous year, indicating deteriorating immediate liquidity. Debtors have increased to £22,531 but remain insufficient to cover short-term liabilities. The large current liabilities of over £1.28 million represent a significant repayment burden in the near term. The company’s ability to generate cash internally or through asset disposals appears limited, and there is no indication of external funding or improved collection efficiency. This cash flow position suggests a risk of payment default or need for urgent refinancing.

4. Monitoring Points:

• Monitor current liabilities trends and any changes in creditor terms or refinancing arrangements.
• Track cash balances and debtor collections closely to assess liquidity improvements.
• Verify investment property valuations through independent external appraisals to ascertain asset realizability.
• Observe any changes in shareholder equity or capital injections that may strengthen the balance sheet.
• Watch for timely filing of accounts and confirmation statements to gauge management compliance and operational stability.