FLETCHER EVAN PROPERTY MANAGEMENT LIMITED

Executive Summary

Fletcher Evan Property Management Ltd shows growing asset value driven by property revaluation but suffers from a significant working capital deficit due to high current liabilities relative to limited current assets and cash. The company’s ability to meet short-term obligations is uncertain without further cash flow support or refinancing. Credit approval is recommended on a conditional basis, requiring enhanced monitoring of liquidity and operational cash flows going forward.

FLETCHER EVAN PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 12999623

Analysis Date: 2025-07-20 14:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fletcher Evan Property Management Limited is an active private limited company operating in residents property management with a relatively short trading history since incorporation in late 2020. The company has demonstrated some asset growth, particularly through increased investment property valuation. However, the company has significant net current liabilities, indicating short-term liquidity pressure. While net assets have increased substantially due to property revaluation gains, the large current liabilities relative to current assets raise concerns about the company’s ability to meet short-term obligations without additional funding or improved cash flow management. Approval of credit should be conditional on obtaining further information on cash flow forecasts, confirmation of ongoing contract stability, and management plans to reduce current liabilities.

2. Financial Strength
   The balance sheet shows total fixed assets of £220,671 as of 30 November 2023, up from £180,659 in the prior year, primarily due to a £40,000 revaluation increase in investment property. Current assets are very low at £6,426, mostly cash (£5,164), against current liabilities of £177,273, resulting in a net current liability position of £170,847. Despite this, net assets improved from £8,839 in 2022 to £41,119 in 2023, largely driven by a £32,303 fair value reserve reflecting unrealized property gains. The company’s equity base, while positive, is constrained by working capital deficits, signaling potential refinancing or liquidity risks if short-term creditors demand repayment.

3. Cash Flow Assessment
   Cash at bank has decreased significantly from £11,316 in 2022 to £5,164 in 2023, indicating cash outflows or limited cash inflows during the latest year. Trade debtors are minimal (£330), suggesting limited receivables but also potentially low turnover or slow billing cycles. The substantial current liabilities predominantly labeled as “other creditors” (£177,273) raise concerns about payables and short-term debt management. The net current liability position indicates a working capital deficit which could impair the company’s ability to cover immediate obligations without additional capital injection or improved cash collection. No employees are reported, which may indicate limited operational overhead but also potentially limited revenue-generating activity.

4. Monitoring Points

• Monitor cash flow and liquidity closely, especially the ability to convert investment property or other assets into cash if needed.
• Review aging and composition of current liabilities to understand creditor risk and payment terms.
• Track turnover and receivables trends to assess operational cash generation capacity.
• Watch for changes in the fair value of investment property that materially affect net asset value and borrowing capacity.
• Confirm directors’ plans to manage working capital deficits and secure additional financing if required.
• Ensure timely filing of accounts and returns continues to avoid regulatory penalties.