Company Number: 12710078

Analysis Date: 2025-07-29 17:25 UTC

1. Credit Opinion: APPROVE
   Hambro Residential Limited demonstrates a stable financial position with consistent net assets around £800k and a solid equity base. The company’s primary asset is investment property valued at £1.705m, which remains steady. Current liabilities are well covered by current assets, and the company maintains positive working capital. There are no signs of financial distress or overdue filings. The directors have maintained operational control since inception, and the company is compliant with filing deadlines, indicating sound management. The material bank loan of approximately £1.02m appears supported by tangible fixed assets, reducing risk for secured lending. Overall, the company’s credit profile is acceptable for credit extension with standard monitoring.

2. Financial Strength:

• Fixed assets (investment properties) are £1.705m, stable over recent years, providing strong collateral backing.
• Net assets increased slightly to £800,810 (2024) from £784,379 (2023), reflecting sound equity growth.
• Shareholders’ funds are consistent at around £711k in share premium and positive retained earnings.
• Current assets (£144k) comfortably cover current liabilities (£12.7k within one year), yielding a strong net current asset position of £131.5k.
• Long-term liabilities consist mainly of a bank loan (£1.023m), representing a significant but manageable leverage given asset backing.

3. Cash Flow Assessment:

• Cash balances increased to £86,266 from £70,961, indicating improved liquidity.
• Debtors are stable around £58k, with no trade debtors reported, suggesting low receivables risk.
• The company’s working capital position is positive and improving (net current assets up from £113k to £131k), supporting ongoing operational needs.
• Absence of audit and small company exemption indicates limited complexity but also reduced transparency on profit and loss; however, balance sheet strength mitigates this concern.

4. Monitoring Points:

• Monitor ongoing servicing of the £1.023m bank loan, including interest coverage and covenant compliance.
• Track any significant fluctuations in investment property valuations, as they underpin the company’s asset base and loan security.
• Watch cash flow consistency to ensure liquidity remains adequate, especially as the company has no employees and limited operational scale.
• Review debtor balances and creditor aging to avoid potential liquidity pressures.
• Ensure continued timely filing of returns and accounts to maintain compliance and transparency.