EYE UNITY PROPERTY LIMITED

Executive Summary

Eye Unity Property Limited holds significant property assets but suffers from negative net worth and high leverage, posing financial risk. The company’s liquidity is constrained with large liabilities exceeding current assets. Credit approval is possible only with conditions focusing on cash flow monitoring and efforts to improve equity and manage debt obligations effectively.

EYE UNITY PROPERTY LIMITED - Analysis Report

Company Number: 12731100

Analysis Date: 2025-07-29 13:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Eye Unity Property Limited shows significant negative net assets (-£39k) and shareholders' funds, which signals that liabilities exceed assets. The company operates in real estate letting and trading, holding substantial fixed assets (£509k) but is heavily leveraged with current liabilities of £609k and long-term creditors exceeding £600k. While the company is active with timely filings and stable asset base, the persistent net liability position and tight working capital indicate constrained financial flexibility. Approval of credit facilities would be conditional on close monitoring of cash flow, repayment plans for creditors, and potential capital injections to improve net worth.

2. Financial Strength:
   The balance sheet reveals a company with substantial tangible fixed assets (property) valued at £509k, increasing slightly from prior year, showing some investment or asset appreciation. However, net liabilities of £39k and negative equity reflect accumulated losses or heavy borrowing. Current assets (£66k) mainly consist of cash (£66.5k) and minimal debtors, but current liabilities (£609k) far exceed current assets, resulting in a negative working capital position. The company is reliant on long-term liabilities (£609k) to finance fixed assets, highlighting leverage risk. Overall, the financial strength is weak due to negative net worth and high gearing.

3. Cash Flow Assessment:
   Cash on hand (£66.5k) is close to current assets total, indicating limited receivables or inventory. However, current liabilities being roughly 9 times the cash balance indicates potential liquidity strain. Net current assets are positive (£61k) per the accounts, which may indicate some creditor structuring or timing of liabilities, but the balance sheet notes show creditors after one year at £609k, which is a significant debt burden. The company’s ability to generate operating cash flow is not disclosed, but the negative net equity and large liabilities suggest cash flow is tight. Effective working capital management and debt servicing depend on rental income stability and access to further capital.

4. Monitoring Points:

• Net asset position and equity recovery: Watch for reduction in net liabilities or capital injections.
• Debt maturity profile and creditor negotiations: Key to assess refinancing or repayment plans.
• Cash flow from operations: Rental income consistency and expense control.
• Timely filing and compliance: Continue to monitor overdue accounts or statutory filings.
• Director and management actions: Evaluate any strategic moves to improve financial health or asset sales.