IMRE PROPERTY INVESTMENTS LIMITED

Executive Summary

IMRE Property Investments Limited has demonstrated asset growth and improved net worth, primarily driven by investment property revaluation. However, the company’s significant negative working capital and limited liquid assets pose short-term liquidity risk. Credit approval is conditional on improved cash flow management and refinancing arrangements, with close monitoring advised.

IMRE PROPERTY INVESTMENTS LIMITED - Analysis Report

Company Number: 13452018

Analysis Date: 2025-07-29 14:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. IMRE Property Investments Limited shows solid growth in net assets and investment property valuation. However, the company exhibits a significant negative working capital position with current liabilities far exceeding current assets by approximately £2.08 million. This liquidity constraint poses short-term repayment risk. The company’s ability to meet near-term obligations depends heavily on refinancing or realisation of long-term assets. The director’s control and steady increase in equity provide some reassurance, but credit approval should be subject to monitoring liquidity improvements and confirmation of cash flow sufficiency.

2. Financial Strength: The company’s fixed assets (including investment property) have increased substantially to £3.11 million in 2024 from £2.24 million the prior year, reflecting capital appreciation and asset additions. Net assets improved markedly to £691,829 from £49,663 in 2023, driven mainly by revaluation gains and increased non-distributable profits reserve. Shareholders’ funds have increased accordingly. Despite this, the company carries significant long-term and short-term creditors (£2.25m current and £0.16m non-current), with hire purchase contracts secured against assets. The balance sheet shows a strong asset base but considerable gearing and concentrated liabilities.

3. Cash Flow Assessment: Current assets are low (£165k), with available cash only £16,924 against current liabilities exceeding £2.25 million, resulting in a net current liability position of over £2 million. Debtors have grown but remain insufficient to cover short-term debts. The negative working capital position indicates potential liquidity challenges. The company’s cash flow viability relies on either asset disposals, refinancing of liabilities, or generating rental income from investment properties. The absence of a profit and loss account limits insight into operating cash flow, so reliance is on balance sheet and notes data.

4. Monitoring Points:

• Liquidity position: ongoing monitoring of cash balances and debtor collections to ensure coverage of current liabilities.
• Refinancing risk: scrutiny of the company’s ability to refinance or restructure short-term debt.
• Property valuations: verification of investment property fair value and market conditions.
• Profitability and cash generation: future filing of full accounts including P&L to assess operational performance.
• Director and group support: confirmation of continued backing from controlling shareholder and parent company.