HELP2RENT PROPERTY MANAGEMENT LTD

Executive Summary

HELP2RENT PROPERTY MANAGEMENT LTD demonstrates significant financial improvement with strong growth in net assets and working capital. The company maintains a healthy balance sheet and liquidity position suitable for credit approval with conditions. Ongoing monitoring of receivables and profitability is recommended to mitigate risks as the business matures.

HELP2RENT PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13802212

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: APPROVE with Conditions
   HELP2RENT PROPERTY MANAGEMENT LTD shows a strong improvement in financial position as of the last filing (31 December 2024). The company has grown net assets significantly from £20,752 to £61,751, reflecting improved profitability or retained earnings. Current liabilities remain manageable relative to current assets, supporting liquidity. However, as a relatively young business incorporated in late 2021 and with unaudited abridged accounts, the financials should be monitored closely for consistency in cash flows and profit generation. Credit approval could be granted with conditions such as regular financial reviews and updated management accounts, especially if lending is extended beyond short-term facilities.

2. Financial Strength:
   The balance sheet shows a solid financial base with net assets increasing threefold over one year, primarily driven by increased current assets (debtors and cash). Tangible fixed assets are modest (£18.8k) but stable, depreciated on a reducing balance basis. The company’s working capital position improved dramatically, with net current assets rising from £73 to £42,947, indicating strong short-term financial health. Shareholder funds have grown from £20.7k to £61.7k, reflecting retained profits or capital injections. The company’s share capital is minimal (£100), typical for a small private company, implying reliance on profits for equity growth. Overall, the balance sheet is healthy with no significant leverage or over-reliance on creditors.

3. Cash Flow Assessment:
   Cash balances have increased significantly to £20,154, supporting operational liquidity. The substantial rise in debtors (£16k to £47.4k) may warrant further review to ensure timely collection and avoid cash flow strain. Current liabilities have increased but remain comfortably covered by current assets, with a current ratio above 2.7, which is positive. The company employs 7 staff, suggesting manageable operating costs. Absence of detailed cash flow statements limits full assessment, but net current asset growth and cash position indicate improving liquidity and working capital management.

4. Monitoring Points:

• Debtor aging and collection efficiency to avoid cash flow risks from rising receivables.
• Profitability trends and cash conversion cycles in subsequent periods to confirm ongoing financial improvement.
• Management of fixed assets and any capital expenditure to ensure asset base supports business growth without overextension.
• Compliance with filing deadlines and maintenance of transparent financial reporting, given unaudited status.
• Stability and conduct of key directors and persons with significant control, noting no adverse records found.