Company Number: 12753816

Analysis Date: 2025-07-29 16:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Good Housing Ltd is a micro-entity operating in real estate letting with modest financial scale. The company is currently showing a negative shareholders’ funds position (-£19,721) which indicates accumulated losses or liabilities exceeding equity. However, net current assets remain positive (£17,311), suggesting some short-term liquidity cushion. The firm’s stable fixed asset base (~£511k) is offset by significant long-term creditors (£457,831), which raises concerns about leverage and the ability to meet long-term obligations. Given these factors, credit approval can be considered with conditions such as close monitoring of cash flow, covenant compliance, and possibly requiring personal guarantees or additional security.

2. Financial Strength:
   The balance sheet shows a consistent fixed asset base around £511k for the last three years, implying stable investment in property or equipment. Current assets have improved from £245k to £298k in the latest year, supporting working capital needs. Nevertheless, the company has considerable long-term liabilities (£457k) almost equal to fixed assets, and negative equity, which denotes a weak capital structure. The negative shareholders’ funds reflect accumulated losses or financing structure risk that should be addressed. The accruals and deferred income have decreased, which may indicate improved matching of revenues and expenses. Overall, the company has asset backing but is financially stretched with limited net equity.

3. Cash Flow Assessment:
   Current liabilities due within one year have increased from £197k to £281k, while current assets also grew, maintaining a small positive net current asset balance. This indicates the company is maintaining a working capital buffer but with limited headroom (£17k). The micro-entity filing status means limited disclosure, so cash flow details are not explicit, but the increase in creditors and deferred income suggests some pressure on short-term cash management. The company’s ability to service short-term obligations depends on continued positive operating cash flows and/or refinancing. Cash flow volatility or delays in rent collection could pose risks.

4. Monitoring Points:

• Track movements in shareholders’ funds and aim for equity improvement.
• Monitor liquidity ratios closely, especially net current assets and quick ratio.
• Keep an eye on long-term debt servicing capacity and refinancing plans.
• Watch for timely filing of accounts and confirmation statements to avoid compliance risks.
• Review director’s conduct and any changes in ownership or control that might affect governance.
• Monitor rental income stability and occupancy rates as key operating performance indicators.