FAMILY HOUSE PROPERTY LTD

Executive Summary

Family House Property Ltd is an early-stage micro-entity with modest equity and significant long-term debt, resulting in a leveraged and potentially fragile balance sheet. While currently solvent, its negative working capital and limited trading history necessitate cautious, conditional credit approval with close monitoring of liquidity and cash flow development. Further operational data will be essential to confirm its ability to service debt and sustain growth.

FAMILY HOUSE PROPERTY LTD - Analysis Report

Company Number: 14875092

Analysis Date: 2025-07-19 12:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Family House Property Ltd is a newly incorporated micro-entity with limited operating history (since May 2023). The company shows a positive net asset position (£3,595) but has net current liabilities of £1,496 and significant long-term creditors (£187,677). The large proportion of long-term liabilities relative to equity suggests moderate leverage and potential liquidity risk. Given the limited trading history and size, credit approval should be conditional on further evidence of cash flow stability and repayment capability as the business matures.

2. Financial Strength:
   The balance sheet reveals fixed assets of £192,768 funded predominantly through long-term creditors (£187,677), with minimal current assets (£1,858) and a small equity base (£3,595). The low shareholders’ funds and net assets indicate a fragile financial position with heavy reliance on external financing. This structure is not uncommon for a startup property management entity investing in fixed assets but raises questions about capital adequacy and risk of over-leverage.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, resulting in negative working capital (£-1,496). This indicates potential short-term liquidity pressure to meet operational obligations. The company’s cash and equivalents are minimal, and with only one employee (the director), operational cash flows may be limited at this stage. Monitoring actual cash inflows, rent collections, or management fees will be critical to assess ongoing liquidity.

4. Monitoring Points:

• Track improvement in net current assets and liquidity ratios over next 12 months.
• Review repayment terms and servicing of long-term creditors to ensure no covenant breaches.
• Monitor turnover and profitability trends as operations develop.
• Watch for any additional capital injections or equity increases to strengthen the balance sheet.
• Verify director’s management performance and adherence to regulatory filings on time.