DON AND TWINS LIMITED

Executive Summary

Don and Twins Limited operates in real estate management with stable property assets but carries significant long-term debt relative to a minimal equity base. The company demonstrates modest liquidity but limited financial strength due to high gearing and thin net assets. Credit approval is conditional, pending further detail on the long-term liabilities and cash flow sustainability to ensure debt servicing capability.

DON AND TWINS LIMITED - Analysis Report

Company Number: 12797909

Analysis Date: 2025-07-29 20:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Don and Twins Limited is a micro-entity engaged in real estate management and trading, active since 2020. The company shows stability in fixed assets reflecting property holdings valued at £191,443 consistently over the last three years. However, the company carries significant debt, with total creditors due after one year around £139k, which is substantial relative to its net assets (£1,726 as of 2024). The net asset base is very thin, indicating limited equity buffer. While current liabilities have remained stable and the company maintains a positive net current asset position (£50,375), the high level of long-term creditors suggests leverage risk. The absence of profit/loss data and low share capital (£2) limit insight into profitability and internal cash generation. Given these factors, credit approval is conditional on further information regarding the nature and terms of long-term liabilities and confirmation of sustainable cash flows to service debt.

2. Financial Strength: The balance sheet is asset-heavy with fixed assets representing the majority of total assets. Current assets are minimal but slightly improving (£4,947 in 2024 vs £2,758 in 2023). The company has a positive net current asset position, indicating working capital adequacy in the short term. However, net assets are very low and have declined slightly from £2,451 in 2023 to £1,726 in 2024, suggesting limited retained earnings or capital reserves. The high creditors after more than one year (£139,342) relative to net assets suggest significant gearing. Overall, financial strength is weak to moderate, with reliance on property asset values and external debt funding.

3. Cash Flow Assessment: The micro-entity reports no audit or detailed profit and loss figures, restricting cash flow analysis. The net current asset position is positive but small, indicating modest liquidity. The company employs only 2 people, which should limit overhead outgoings but may also limit operational scale. The stable current liabilities and increase in current assets slightly improve liquidity, but the large long-term creditor balance poses a risk if refinancing is required or if rental/income streams falter. Without detailed cash flow statements, it is critical to verify the company’s rental income, debt servicing capacity, and any covenant compliance before extending credit.

4. Monitoring Points:

• Monitor net asset trends and equity buffer changes in future accounts filings.
• Review the nature, maturity, and terms of the long-term liabilities to assess refinancing risk.
• Track current and future cash flow from real estate management and sales activities.
• Confirm timely payment history on creditors and any creditor concentrations.
• Evaluate any changes in employee numbers or operational scale that may affect costs.
• Ensure timely filing of accounts and confirmation statements to maintain transparency.