F & G PROPERTY INVESTMENTS LIMITED

Executive Summary

F & G Property Investments Limited displays weak financial health characterized by negative net assets, significant working capital deficits, and deteriorating cash reserves. Reliance on related party loans and lack of external audit or valuation increase risk. Given these factors, new credit facilities cannot be recommended currently without substantial improvement in liquidity and capitalization.

F & G PROPERTY INVESTMENTS LIMITED - Analysis Report

Company Number: 12886096

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion: DECLINE
   F & G Property Investments Limited shows persistent net liabilities and negative shareholders' funds over the last five years, indicating ongoing losses or insufficient capital injection. The company’s current liabilities significantly exceed current assets, resulting in large negative working capital. Despite holding investment property valued at £624k and a recent investment of £150k, the company struggles with liquidity as current liabilities (including substantial interest-free loans from related parties) remain high. The absence of an audit and reliance on director valuation of property introduces uncertainty. The negative equity position and poor liquidity signal an elevated credit risk, making approval for new credit facilities inappropriate at this time.

2. Financial Strength:
   The balance sheet is weakened by net liabilities of approximately £35k as of January 2025, despite total assets exceeding £774k. Fixed assets mainly comprise investment property valued at £624k, held at cost with no external valuation, which may overstate realizable value. Current liabilities (£681k) far exceed current assets (£82k), generating a working capital deficit of nearly £600k. The company’s capital structure relies heavily on related party interest-free loans (£669k combined) and bank loans (£209k) due after one year. Equity is negative and deteriorating, indicating erosion of capital and limited financial cushioning.

3. Cash Flow Assessment:
   Cash balances have declined sharply from £275k in 2024 to £70k in 2025, reducing liquidity headroom. Debtors are minimal (£12k), so the company’s ability to improve cash flow from operations appears limited. The large negative net current assets position implies the company is dependent on refinancing or continued related party support to meet short-term obligations. The director’s note on going concern relies on creditor support rather than strong internal cash generation, reflecting poor operational cash flow and potential liquidity risk.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) to watch for improvements or further deterioration.
• Timely repayment or restructuring of related party interest-free loans and bank debt.
• External independent valuation of investment property to assess true asset backing.
• Profitability trends and cash flow from rental income or property sales.
• Any changes in director or ownership structure that impact governance or financial support.