HEATHROW PROPERTIES MANAGEMENT LTD

Executive Summary

Heathrow Properties Management Ltd is a small, newly established property management company with a fragile financial position characterized by minimal equity and reliance on related party loans. While net current assets improved, cash balances decreased, indicating liquidity challenges. Credit approval is conditional on ongoing shareholder support and close monitoring of cash flow and debtor collections to mitigate risk of financial distress.

HEATHROW PROPERTIES MANAGEMENT LTD - Analysis Report

Company Number: 13557691

Analysis Date: 2025-07-20 15:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Heathrow Properties Management Ltd is a recently incorporated private limited company active in residents property management. The company shows modest net current assets and net assets of £100, reflecting minimal equity capital. While current assets exceed current liabilities, the company carries related party debt (amounts owed to group undertakings) that has increased notably. The company’s ability to service external debt and sustain operations depends heavily on ongoing support from its sole shareholder/director. Therefore, credit approval is possible but should be conditional on continued shareholder backing and improved financial performance.

2. Financial Strength:
   Balance sheet analysis indicates a very thin equity base of £100, unchanged over the years, suggesting minimal retained earnings or capital injections. Net current assets improved from £3,385 in 2023 to £7,098 in 2024, driven by increased trade debtors and slightly higher current liabilities. The increase in amounts owed to group undertakings (from £3,285 to £6,998) represents growing related-party borrowings, which may be subordinated but indicate reliance on internal financing. No fixed assets are reported, so all assets are current. Overall, the company is small and financially fragile with limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Cash at bank declined significantly from £12,430 in 2023 to £5,839 in 2024, which presents potential liquidity pressures despite increased debtors. The rise in trade debtors from £15,727 to £32,311 suggests slower collections or increased sales on credit, which may strain cash flow. Current liabilities rose moderately, but the increase in related party debt after more than one year points to external cash needs being met by shareholder loans rather than operating cash flow. Working capital is positive but modest, so the company’s liquidity depends on debtor collections and continued shareholder support.

4. Monitoring Points:

• Debtor collection periods and ageing to ensure timely cash inflows.
• Trends in related party borrowings and whether shareholder loans continue or are repaid.
• Cash balances and working capital fluctuations to detect emerging liquidity issues.
• Operating profitability metrics when available to confirm sustainability.
• Any changes in director or shareholder status that could affect control or financial backing.