FOUR DOORS DOWN LTD

Executive Summary

Four Doors Down Ltd is a financially stable, small private real estate letting company with a solid equity base and positive working capital. Its liquidity and low debt profile underpin a strong capacity to meet financial obligations. Subject to continued rental income stability and monitoring of property valuations, the company presents a low credit risk suitable for credit facility approval.

FOUR DOORS DOWN LTD - Analysis Report

Company Number: 14252688

Analysis Date: 2025-07-20 14:21 UTC

1. Credit Opinion: APPROVE
   Four Doors Down Ltd demonstrates a stable financial position with positive net current assets and consistent equity growth. The company operates in real estate letting, which typically provides steady rental income that supports debt servicing capabilities. No overdue filings or signs of financial distress are evident. The directors have confirmed going concern status and the company maintains adequate liquidity. While the company is relatively young and small (incorporated in 2022 with 2 employees), its financial statements show prudent management and increasing retained earnings. Given these factors, credit approval is recommended, subject to standard lending covenants.

2. Financial Strength:
   The company’s balance sheet indicates financial strength for its size. Fixed assets consist mainly of investment property valued at £162,567, stable year-over-year. Current assets total £26,392 (cash £24,729), comfortably covering current liabilities of £6,741, producing net current assets of £19,651. Total equity stands at £182,218, reflecting retained earnings growth (£22,118 vs £11,467 prior year). The capital structure is predominantly equity-based with £160,000 in redeemable preference shares and minimal debt, indicating low financial risk and no reliance on external borrowings.

3. Cash Flow Assessment:
   Liquidity is robust given the cash holdings of £24,729 and positive working capital. Trade debtors are modest (£1,300) and manageable within operating cycles. Current liabilities, including corporation tax and creditors, are well covered by cash and short-term assets. The absence of bank loans or overdrafts reduces liquidity risk. Rental income appears to be the primary cash inflow, supporting ongoing operations and allowing accumulation of cash reserves. The company’s ability to generate cash internally and maintain low short-term liabilities suggests sound cash flow management.

4. Monitoring Points:

• Rental income trends and occupancy rates to ensure continued cash inflow.
• Timely payment of corporation tax and creditor obligations to avoid liquidity strain.
• Changes in investment property valuation, especially if market conditions shift.
• Any increase in debt or leverage that could affect financial stability.
• Directors’ adherence to filing deadlines and regulatory compliance.
• Growth in retained earnings and net assets as indicators of business trajectory.