ECLIPSE PROPERTY PARTNERSHIP LTD

Executive Summary

Eclipse Property Partnership Ltd shows a stable but leveraged financial position typical for a property letting business, with positive net assets and tangible property backing. The company’s cash levels have declined, warranting conditional approval subject to verification of consistent rental income and adequate cash flow for servicing its mortgage debt. Ongoing monitoring of liquidity and debt servicing will be essential to ensure continued repayment capacity.

ECLIPSE PROPERTY PARTNERSHIP LTD - Analysis Report

Company Number: 13637669

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Eclipse Property Partnership Ltd is a small private limited company focused on property letting, with a relatively stable asset base and increasing net assets. However, the company carries significant long-term borrowings (£280k) secured by a property mortgage, which is typical in the real estate sector but creates leverage risk. The cash balance has reduced notably from £9,465 in 2023 to £5,849 in 2024, and current liabilities, while low (£1,663), are almost entirely accruals and deferred income, indicating no immediate liquidity pressure. The company’s ability to service debt depends heavily on rental income and ongoing management of borrowings. Approval is recommended conditional upon monitoring cash flow and confirming income streams adequate to cover interest and principal repayments.

2. Financial Strength:

• Tangible fixed assets stand at £305,239, predominantly freehold property, providing solid collateral for the mortgage loan.
• Net assets have grown from £23,679 in 2023 to £29,363 in 2024, indicating modest retained earnings accumulation and a stable equity position.
• The company’s gearing is high given the £280,267 borrowings against net assets of £29,363, which indicates significant leverage but this is customary in property partnerships.
• The balance sheet shows no current borrowings, and current assets exceed current liabilities by £4,391, implying positive short-term liquidity.

3. Cash Flow Assessment:

• Cash at bank decreased by approximately 38% year-on-year, from £9,465 to £5,849, suggesting cash outflows or repayments exceeding inflows in the latest period.
• Current liabilities are minimal and relate to accruals and deferred income, reducing pressure on near-term liquidity.
• Debtors are negligible (£205) and likely prepayments rather than trade receivables, so no significant cash flow risk from collections.
• The company’s cash position requires close attention to ensure it maintains sufficient liquidity to meet interest payments and unexpected expenses.

4. Monitoring Points:

• Monitor actual rental income and cash flow statements to verify consistent debt service capacity.
• Track mortgage repayments and refinancing risk given the high loan balance relative to equity.
• Observe any changes in property valuation and occupancy levels impacting asset value and income.
• Review directors’ management strategies for working capital and cash flow management.
• Watch for any overdue filings or changes in director conduct that could impact governance and credit quality.