FIGS PROPERTY LIMITED

Executive Summary

Figs Property Limited is currently in a financially weak position with negative net assets and insufficient liquidity to cover short-term liabilities, driven by growing creditor balances and reliance on director funding. The company’s balance sheet leverage and negative working capital raise significant credit risk concerns. Given this, new credit facilities should be declined until there is clear evidence of improved financial stability and cash flow generation.

FIGS PROPERTY LIMITED - Analysis Report

Company Number: 13150524

Analysis Date: 2025-07-29 21:06 UTC

1. Credit Opinion: DECLINE
   Figs Property Limited exhibits a weak financial position with persistent net liabilities and negative shareholders' funds over the last four years. Current liabilities have increased significantly from £168k to £276k, while net current assets remain negative, indicating an ongoing working capital deficit. The company’s inability to generate positive net assets and the lack of liquidity to cover short-term obligations suggest it is not currently capable of servicing additional debt. Furthermore, the company’s continued negative equity and reliance on director advances highlight financial vulnerability and elevated credit risk.

2. Financial Strength:
   The company’s balance sheet shows tangible fixed assets valued at £269k, primarily freehold property, but total liabilities exceed total assets, leading to net liabilities of £6.8k as at January 2024. The negative shareholders' funds reflect accumulated losses and an erosion of capital, which undermines financial resilience. The increase in fixed assets is funded through increased liabilities, not equity, indicating leverage without strengthening capital base. The absence of depreciation suggests potential overstatement of asset values or lack of asset amortization, which should be monitored.

3. Cash Flow Assessment:
   Net current liabilities of £275,958 indicate the company’s current assets are insufficient to cover short-term debts, implying liquidity constraints. The growing creditor balances and negative working capital position raise concerns about the company’s ability to meet operational expenses and short-term obligations without additional funding. Although the director’s loan account remains in credit, reliance on director advances is not a sustainable source of liquidity. No cash flow statements are provided, but negative net current assets and increasing creditors suggest cash flow pressures.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction in current liabilities.
• Monitor any repayment or further advances on director’s loan accounts.
• Review any movements in fixed asset valuations and potential impairments.
• Track company’s filing compliance and operational performance updates for signs of turnaround or worsening credit risk.
• Observe for changes in the capital structure or equity injections to improve solvency.