ENIGMA PROPERTY INVESTMENTS LTD

Executive Summary

Enigma Property Investments Ltd demonstrates improving financial strength through increased fixed assets and equity, but maintains a challenging liquidity position with negative working capital. The company’s real estate focus and micro-entity status suggest limited operational complexity but require careful monitoring of cash flow and current liabilities. Conditional credit approval is recommended with emphasis on ongoing liquidity oversight.

ENIGMA PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 13680203

Analysis Date: 2025-07-29 17:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Enigma Property Investments Ltd shows a significant improvement in net asset position from £9,591 in 2023 to £340,129 in 2024, primarily driven by an increase in fixed assets. However, the current liabilities remain high relative to current assets, resulting in a negative net working capital position (-£139,951). The company is still relatively new (incorporated 2021) and classified as a micro-entity. The directors have maintained compliance with filing deadlines. Given the asset growth and equity increase, the company appears to have potential to meet debt obligations, but liquidity constraints warrant close monitoring and possible conditions on credit (e.g., limits on additional short-term borrowings or requirement for updated cash flow forecasts).

2. Financial Strength:
   The balance sheet shows fixed assets of £480,760 as of 31 March 2024, up from £340,109 the previous year, indicating investment in property assets consistent with its real estate activities (SIC codes 68209, 68100). Total net assets improved substantially to £340,129 from £9,591, reflecting retained earnings or equity injections. However, current liabilities stand at £146,475 compared to current assets of only £6,524, creating a working capital deficit. This suggests the company may rely on long-term financing or equity to cover short-term obligations. Overall, the financial strength is improving but remains thin in liquidity.

3. Cash Flow Assessment:
   The micro-entity accounts do not provide explicit cash flow statements, but working capital analysis shows tight liquidity. The negative net current assets position (-£139,951) signals potential challenges in meeting short-term liabilities from current assets. The company’s average number of employees is low (1), indicating minimal payroll obligations. The large fixed asset base in property is illiquid, so the company’s ability to convert assets quickly to cash in downturns may be limited. Monitoring cash reserves and short-term creditor aging is advisable.

4. Monitoring Points:

• Liquidity trends: Track current assets versus current liabilities and cash balances quarterly.
• Debt servicing capacity: Ensure interest and principal payments can be met as loans mature.
• Asset valuations: Monitor property values to assess collateral strength.
• Directors’ actions: Watch for changes in management or equity injections that may signal financial stress or support.
• Compliance with filing deadlines and any changes in company status.