GRACIE PROPERTY INVESTMENTS LTD

Executive Summary

Gracie Property Investments Ltd is a very young property investment company with a weak financial foundation characterized by negative net assets and poor liquidity. The current financials reveal insufficient working capital to meet liabilities, indicating high risk from a credit perspective. Without demonstrated cash flow generation or equity support, credit facilities are not recommended at this stage.

GRACIE PROPERTY INVESTMENTS LTD - Analysis Report

Company Number: 14516187

Analysis Date: 2025-07-19 12:34 UTC

1. Credit Opinion:
   DECLINE. Gracie Property Investments Ltd is a newly incorporated micro-entity with its first financial year ending 30 November 2023. The company shows a net liability position of £1,165 and negative net current assets of £50,691, indicating liquidity stress. Additionally, current liabilities of £118,000 exceed current assets by a significant margin, and the company has no employees or trading history to demonstrate cash flow generation or operational resilience. The sizeable long-term and short-term liabilities relative to fixed assets and minimal current assets raise concerns about its ability to service debt or meet commercial obligations without additional capital injection.

2. Financial Strength:
   The balance sheet reveals fixed assets of £167,526, which likely represent property investments given the SIC code (other letting and operating of own or leased real estate). However, the company’s £118,000 of non-current liabilities and £52,167 of current liabilities create a net liability position of £1,165, meaning total liabilities slightly exceed total assets. Negative shareholders’ funds and lack of accumulated reserves underscore a weak equity base. The negative net current assets position signals working capital deficiency and potential solvency issues in the short term.

3. Cash Flow Assessment:
   With current assets at only £1,476 (likely cash and receivables) versus current liabilities over £52k, the company faces immediate liquidity constraints. The absence of employees and presumably minimal operational activity suggests limited internal cash flow generation at this stage. The financial statements do not disclose cash flow from operations, but the working capital deficit and net liability position strongly suggest reliance on external funding or shareholder loans to meet short-term obligations.

4. Monitoring Points:

• Monitor future filings to assess whether the company improves working capital and net asset position as it matures and develops its property portfolio.
• Watch for evidence of revenue generation or rental income streams to support debt servicing.
• Track any changes in debt levels, especially short-term liabilities, which currently strain liquidity.
• Management's ability to inject further equity or secure external financing on reasonable terms will be critical.
• Monitor director and shareholder actions since a single individual holds full control, which concentrates governance risk.