FOX AND MOLE PROPERTIES LIMITED

Executive Summary

Fox and Mole Properties Limited is a start-up property letting company with a strong asset base but high leverage and limited liquidity. While it currently meets filing obligations, the company's negative working capital and low equity suggest some financial vulnerability. Conditional credit approval is recommended with close monitoring of cash flow, debt servicing ability, and operational performance to ensure ongoing creditworthiness.

FOX AND MOLE PROPERTIES LIMITED - Analysis Report

Company Number: 14762275

Analysis Date: 2025-07-19 12:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fox and Mole Properties Limited is a newly incorporated property letting company with limited financial history. The company shows a modest net asset position (£2,020) primarily supported by tangible fixed assets (£110,000) against a significant long-term liability (£99,482). The negative net current assets (£-8,498) indicate short-term liquidity pressure. The current liabilities are manageable but nearing the level of current assets, and the long-term debt level is high relative to equity. Given the company’s infancy and limited operational data, approval is conditional on ongoing monitoring of cash flow and debt servicing capability.

2. Financial Strength:
   The balance sheet reveals a strong fixed asset base (land and buildings) but is heavily leveraged with substantial long-term creditors exceeding £99k. Net assets are positive but very low (£2,020), reflecting minimal equity capital and retained earnings. The company’s current assets (£1,413) are insufficient to cover current liabilities (£9,911), indicating working capital deficits. The reliance on long-term borrowings to finance assets suggests moderate financial risk and some vulnerability to adverse market conditions or interest rate increases.

3. Cash Flow Assessment:
   Cash on hand is minimal (£1,000), and trade debtors are negligible (£413), limiting liquidity. The negative net current assets position highlights potential short-term cash flow constraints. No information on turnover or profitability is available, and the company has no employees, suggesting limited operational complexity but also limited cash inflows to service debts. The company’s capacity to meet upcoming obligations depends on rent collections and refinancing options for its sizable long-term debt.

4. Monitoring Points:

• Liquidity ratios and working capital trends on subsequent filings.
• Debt servicing performance, including interest and principal repayments.
• Rent roll and occupancy rates of properties to assess revenue stability.
• Any changes in borrowing terms or additional capital injections.
• Timely submission of annual accounts and confirmation statements.