ETHERIDGE PROPERTY INVESTMENT AND MANAGEMENT LTD

Executive Summary

Etheridge Property Investment and Management Ltd is a newly established micro-entity with minimal net assets and limited financial history. The presence of a qualified chartered accountant as director supports sound financial management, but the thin equity base and lack of operational cash flow require cautious credit exposure. Conditional approval is advised with restrictions and close ongoing monitoring of financial performance and liquidity.

ETHERIDGE PROPERTY INVESTMENT AND MANAGEMENT LTD - Analysis Report

Company Number: 15219497

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Etheridge Property Investment and Management Ltd is a newly incorporated micro-entity with limited financial history and modest net assets. The company’s current net assets of £302 reflect a very small operational scale, which is not unusual for a start-up in property investment and management. The director is a certified chartered accountant, indicating sound financial stewardship at the management level. However, given the minimal asset base and absence of profitability or cash flow track record, credit exposure should be limited and closely monitored. Approval is recommended with conditions restricting credit limits and requiring updated financials within 12 months.

2. Financial Strength:
   The balance sheet shows current assets of £4,802 against current liabilities of £4,500, yielding net current assets of just £302. There are no long-term assets or liabilities reported, and shareholders’ funds equal the net assets of £302. This very thin equity base offers minimal cushion against adverse events. The micro-entity status and minimal financial scale mean the company currently has low financial strength. Growth or capital injection will be necessary to improve resilience.

3. Cash Flow Assessment:
   With current assets almost entirely matching current liabilities, liquidity appears tight but balanced at present. The company employs 2 staff, indicating some ongoing operating costs. No cash flow or profit & loss data is provided, limiting the ability to assess operational cash generation. Given the early stage and limited net assets, the company’s ability to service debt depends heavily on future cash inflows and financial support from its shareholders who hold significant control.

4. Monitoring Points:

• Subsequent financial reports to confirm growth in net assets and profitability.
• Cash flow statements to assess operational liquidity and debt servicing capability.
• Changes in working capital requirements as business expands.
• Directors’ conduct and any changes in ownership/control.
• Timely filing of statutory accounts and confirmation statements.