Company Number: 12742699

Analysis Date: 2025-07-20 18:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Daata Properties Limited shows modest but improving net asset growth over recent years, with positive net current assets indicating some short-term liquidity. However, the company carries significant long-term liabilities relative to equity, resulting in low financial leverage capacity. The business is micro-sized, operating primarily in real estate trading, with a single employee and limited turnover disclosure. The directors have maintained timely filings and the main controlling shareholder/director holds strong governance influence. Lending consideration should be contingent on clarity around income generation to cover debt service and ongoing monitoring of liability levels.

2. Financial Strength: The balance sheet reveals fixed assets of £627k consistently over the last 3 years, likely representing property held for sale or investment. Current assets have increased slightly from £14k to £22k, while current liabilities remain low at under £3k. However, the company’s creditors due after more than one year exceed £595k, a substantial long-term obligation relative to net assets of £44.9k. Shareholders’ funds have grown from a deficit in 2020 (-£13.6k) to positive but modest equity, showing a slow recovery. Overall, the business is asset-heavy but leveraged, with limited equity buffer.

3. Cash Flow Assessment: Current assets exceed current liabilities by approximately £20k, implying positive working capital and short-term liquidity. The company’s micro status and limited employee count suggest low operating overheads. However, the absence of a profit and loss account limits visibility into operating cash flows and profitability. The ability to meet interest and principal repayments on long-term borrowings is unclear and requires further verification. Cash flow generation from the property sales cycle or rental income should be confirmed before extending credit.

4. Monitoring Points:

• Track changes in long-term liabilities and their repayment schedules to avoid overleveraging.
• Monitor net asset trends for sustainable equity growth.
• Review forthcoming profit and loss data to assess operational profitability and cash generation.
• Confirm income streams supporting debt servicing, especially given the company’s property trading focus.
• Observe director conduct and governance given the controlling shareholder’s significant influence.
• Ensure continued compliance with filing deadlines and regulatory obligations.