GM247 PROPERTIES INVESTMENT GROUP LIMITED

Executive Summary

GM247 Properties Investment Group Limited is a start-up real estate investment company with significant leverage and negative equity at its first year end. Although asset-backed, the company’s negative cash and working capital deficits pose short-term liquidity risks. Conditional credit approval is recommended with close monitoring of cash flow and financial position improvements to support debt servicing capacity.

GM247 PROPERTIES INVESTMENT GROUP LIMITED - Analysis Report

Company Number: 15076196

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GM247 Properties Investment Group Limited is a newly incorporated private limited company (August 2023) engaged in real estate management and investment. The company’s balance sheet shows a net liability position (£18,969 negative shareholders' funds) and a negative cash balance (£4,969), primarily due to significant long-term debt (£282,000) related to property investment (£268,000 fixed assets). While the company is asset-backed with investment property, the current liquidity position and negative equity raise concerns about short-term payment capability. Approval is conditional on obtaining additional security or guarantees and monitoring cash flow closely.

2. Financial Strength:

• Fixed assets (investment property) amount to £268,000, which is the main asset backing the business.
• Net current liabilities of £4,969 indicate working capital deficiency, reflecting a negative short-term liquidity position.
• Long-term liabilities of £282,000 (bank loans, director loans, and other creditors) exceed the value of fixed assets, resulting in negative net assets and shareholders’ funds of £-18,969.
• The company has no employees, indicating low operating overhead but also limited operational scale.
• Negative equity suggests a reliance on external funding to sustain operations and meet obligations.

3. Cash Flow Assessment:

• Negative cash balance at year end indicates potential cash flow stress and limited immediate liquidity to cover current liabilities.
• Working capital deficit implies the company may struggle to meet short-term obligations without refinancing or cash injections.
• Absence of profit and loss data limits assessment of operational cash generation; however, the negative equity and cash suggest initial operating losses or significant financing costs.
• The company’s ability to service debt depends on rental income or realisation of property assets, which is not detailed here.

4. Monitoring Points:

• Track cash flow monthly to ensure current liabilities can be met and avoid liquidity shortfalls.
• Monitor rental income or revenue streams from property holdings to assess operational cash generation.
• Review any additional borrowing or equity injections that may improve financial stability.
• Watch for improvements in net asset position and cash reserves in subsequent filings.
• Evaluate director loans and related party transactions for potential risk or support.
• Confirm timely filing of accounts and confirmation statements as per Companies House deadlines.