Company Number: NI671638

Analysis Date: 2025-07-20 15:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D Leslie Properties Limited shows an ongoing real estate investment and development operation with significant fixed assets valued at £353,482. However, the company’s net current liabilities are substantial (£175,745 in 2023), and shareholders’ funds remain negative (-£524), indicating historical losses and a weak equity base. The company is reliant on related party financing (£183,660 owed) and bank borrowings exceeding current assets. This dependency suggests vulnerability to changes in financing terms or cash flow disruptions. Approval is recommended only if additional security or guarantees are provided, and with close monitoring of liquidity and debt servicing ability.

2. Financial Strength:
   The balance sheet reflects high fixed assets in investment property with a stable valuation since 2021, supporting the company’s core business. However, the negative net assets and equity position highlight accumulated losses and insufficient retained earnings. The current liabilities, primarily related party debts and bank borrowings, significantly exceed current assets, creating working capital deficiencies. The company’s capital structure is weak, with minimal share capital (£2) and no retained profits to buffer against financial stress.

3. Cash Flow Assessment:
   Cash at bank improved from £4,300 in 2022 to £15,183 in 2023, indicating some improvement in liquidity. However, current liabilities remain very high, and debt servicing depends heavily on continued related party support and the ability to generate rental income or development profits. The lack of employees and minimal operating expenses suggest low ongoing cash burn, but the working capital deficit and substantial borrowings create liquidity risk. The company must demonstrate consistent positive cash flow from operations or refinancing options to maintain solvency.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to track working capital improvement.
• Debt repayment schedules and refinancing arrangements, especially for related party loans and bank borrowings.
• Property market conditions affecting investment property valuations and rental income.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Any changes in related party transactions or director/shareholder support.