Company Number: 14155419

Analysis Date: 2025-07-29 14:06 UTC

1. Credit Opinion: DECLINE
   GINGERBREAD PROPERTIES LIMITED exhibits significant financial stress. The company’s net assets are negative (£-45,547 as of June 2024), indicating liabilities exceed assets. There is a steep increase in current liabilities and long-term creditors, with current liabilities now nearly £1 million, while current assets remain negligible (£12,525). This imbalance raises serious doubts about the company’s ability to meet short-term obligations and service any new credit facilities without additional capital injection or cash flow improvement.

2. Financial Strength:
   The balance sheet shows a heavy reliance on debt financing (£1,012,758 creditors due after one year) relative to modest fixed assets (£1,032,104). Although fixed assets increased significantly from £601,183 to £1,032,104, the company’s net asset position is still negative due to high liabilities. Shareholders’ funds remain negative, reflecting accumulated losses or capital deficits. The micro-entity size limits transparency, but the available data suggest weak equity cushions and a fragile capital structure.

3. Cash Flow Assessment:
   Current assets are minimal and only slightly improved, while current liabilities have surged to over £1 million. Net current assets are negative (£-64,893), indicating working capital deficiency and likely liquidity constraints. The company employs no staff, suggesting minimal operating overhead, but the lack of cash or working capital signals difficulty in covering short-term debts or operational expenses without external funding sources.

4. Monitoring Points:

• Track changes in current liabilities and working capital position closely to detect further liquidity deterioration.
• Monitor any new capital injections or equity funding to improve net asset position.
• Review upcoming account filings and confirmation statements for any changes in business activity or financial restructuring.
• Watch for any director changes or significant control shifts that may impact management quality or strategy.