FENCE PROPERTY MANAGEMENT SERVICES LTD

Executive Summary

Fence Property Management Services Ltd is a newly established property management company exhibiting weak financial health with net liabilities and a significant working capital deficit funded primarily through director loans. Its limited operational scale and lack of profitability raise concerns about its ability to service debt. Credit facilities are not recommended at this stage without substantial improvements in liquidity and equity position.

FENCE PROPERTY MANAGEMENT SERVICES LTD - Analysis Report

Company Number: 14157623

Analysis Date: 2025-07-29 18:48 UTC

1. Credit Opinion: DECLINE
   Fence Property Management Services Ltd shows significant financial stress and a weak credit profile. The company has been in operation for just over two years and its latest financials to 30 June 2024 reveal net liabilities of £11,979 and negative net current assets of £68,009. The current liabilities are largely director loans (£93,086), indicating reliance on insider financing rather than external creditworthiness. There is no evidence of profitability or positive cash flow generation, and the company has no employees, which may imply limited operational capacity. The director is also the sole significant controller, which concentrates risk. Given the negative equity, working capital deficit, and lack of external funding or diversified management, the ability to service new credit facilities appears limited.

2. Financial Strength:
   The balance sheet shows a £56,030 tangible fixed asset (land & buildings) addition during the year, which may support asset-backed lending. However, the company’s net liabilities and negative shareholders’ funds demonstrate erosion of financial strength. The substantial director loan account increases financial leverage and heightens risk exposure. No depreciation has been charged, suggesting assets are newly acquired or not yet impaired. Overall, the company’s financial position is weak, with insufficient equity buffer and a working capital deficit that could stress liquidity.

3. Cash Flow Assessment:
   Cash on hand is £25,587, which is insufficient to cover current liabilities of £93,596, resulting in a net current liability position of £68,009. The absence of employees and limited operational scale likely constrain cash inflows. Reliance on director loans to meet liabilities indicates constrained external liquidity and potential going concern risk. Without clear evidence of improving cash flows or operational revenues, liquidity concerns remain significant.

4. Monitoring Points:

• Improvement in net current assets and working capital position
• Reduction in director loans or substitution with third-party financing
• Profitability trends and cash flow from operations in subsequent periods
• Any changes in management or capitalization structure
• Compliance with future filing deadlines and transparency in financial disclosures