Company Number: 12928498

Analysis Date: 2025-07-20 14:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Deeba Properties Limited is a recently incorporated small private limited company engaged in buying and selling own real estate. The company exhibits a modest negative net asset position (-£1,142) and negative shareholders' funds (-£1,242) as of the latest accounts dated 31 October 2023, indicating a slight erosion of capital. However, the company has demonstrated growth in current assets and debtors from 2021 to 2023, suggesting increasing business activity. The large amount of current liabilities due after more than one year (£1.94M) compared to current assets raises some liquidity concerns. Credit approval is conditional on obtaining clarity on the nature and repayment terms of long-term liabilities and monitoring cash flow closely. The absence of employees and an unaudited abridged account filing is consistent with a micro or small size entity but limits financial transparency.

2. Financial Strength:
   The balance sheet shows total current assets of £1.94M, heavily concentrated in debtors (£1.91M) with only £31k in cash. Current liabilities stand at £1,939k, nearly matching current assets, leading to a marginal net current asset figure (£1,937,425 stated may be a typographical error or misclassification, as it conflicts with liabilities). More importantly, non-current liabilities slightly exceed current assets, resulting in net liabilities of £1,142. Negative shareholders' funds indicate accumulated losses or capital deficits. The increase in debtors and liabilities since 2021 indicates the company is carrying significant receivables and borrowings, which may pressure liquidity. The small share capital (£100) suggests limited equity buffer.

3. Cash Flow Assessment:
   The company’s cash balance is low (£30,977) relative to total liabilities, and working capital dynamics are tight. Debtors represent a large portion of current assets, which may pose collection risk and delay cash inflows. No employees or operational expenses are disclosed, which may limit cash outflows but also reflects a minimal operational scale. The company’s ability to meet short-term obligations depends heavily on debtor collection efficiency and refinancing or repayment of long-term liabilities. Lack of detailed cash flow statements restricts full liquidity assessment, but current data suggests potential strain if debtor collection slows.

4. Monitoring Points:

• Regular review of debtor aging and collection performance to ensure cash inflows meet liabilities due.
• Clarification and monitoring of long-term liabilities repayment schedules and interest obligations.
• Watch for changes in net asset position and shareholders’ funds for signs of financial strengthening or deterioration.
• Monitor any changes in director appointments or ownership control that may affect governance or risk profile.
• Assess future filings for audited accounts or additional financial disclosures that improve transparency.