Company Number: 13622542

Analysis Date: 2025-07-20 13:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Glodwick 22 Ltd is an active private limited company operating in the real estate sector, holding significant fixed assets valued at £950,000 (land and buildings). However, the company shows a highly leveraged position with current liabilities (over £782k due after more than one year) overshadowing its modest net current assets (~£10k). The shareholders’ funds have decreased from £207k to £178k in the latest year, indicating some erosion of equity likely due to operating losses as reflected in the negative profit and loss reserve. The absence of employees and a narrow asset base concentrated in fixed assets suggest limited operational flexibility. The company’s ability to service debt depends largely on rental income or asset disposal, but cash on hand is minimal. Approval may be granted if the company can demonstrate stable or improving cash flows and/or provide additional security or guarantees.

2. Financial Strength:
   The balance sheet is asset-heavy with £950k in tangible fixed assets and minimal working capital. Net assets declined slightly to £177,777 from £207,222 the previous year, driven by an increased retained loss (profit and loss reserve moved from -£71k to -£100k). Current liabilities appear understated in the abridged accounts but long-term creditors total £782k, indicating significant debt financing. The company holds very limited current assets (£12k cash, no debtors in the latest year), suggesting liquidity is tight. The gearing ratio is high due to the large creditor balance relative to equity, posing a risk if cash inflows are disrupted. No depreciation is charged, indicating property held at cost or valuation without impairment adjustments.

3. Cash Flow Assessment:
   Cash balances are low (£12,338), with no reported receivables in the latest year, which may reflect either timing or collection issues. Net current assets remain positive but very modest, indicating near break-even working capital. The company does not report turnover or profit details in the abridged accounts but the increased retained losses imply limited profitability. Absence of employees suggests minimal operational expenses but also limited revenue-generating activity. The company’s liquidity position relies heavily on cash flow from property leasing or sales, with little buffer to absorb shocks. Monitoring liquidity closely and ensuring timely collection of rents or other income streams is critical.

4. Monitoring Points:

• Profit and loss performance: Future annual accounts to confirm if losses continue or profitability improves.
• Cash flow trends: Monitor cash balances and receivables to ensure timely debt servicing ability.
• Debt levels: Watch creditor balances and any refinancing or repayments, especially long-term creditors.
• Asset valuations: Review for impairment or market revaluation of fixed assets, as property values can fluctuate.
• Director and company activity: Given no employees and a single director, assess management’s ability to sustain operations and meet obligations.