IPMC PROPERTIES LTD

Executive Summary

IPMC PROPERTIES LTD is a newly established micro-entity in real estate with limited financial history and modest net assets supported by fixed assets financed partly through medium-term liabilities. The company lacks liquidity and operating cash flows, making credit risk higher without additional collateral or cash flow assurances. Conditional approval is recommended pending further financial detail and risk mitigants. Regular monitoring of asset values, cash flows, and debt servicing capacity is essential to manage credit exposure.

IPMC PROPERTIES LTD - Analysis Report

Company Number: 13679128

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   IPMC PROPERTIES LTD is a micro-entity operating in the real estate sector focused on buying and selling its own properties. The company is very young, incorporated in late 2021, with its first substantive financial activity appearing in the year ended 31 October 2024. The presence of fixed assets valued at £77,000 and creditors due after one year of £52,530 indicates the company has acquired property assets likely financed through medium-term liabilities. Given the limited financial history and minimal current assets or liquidity, the company’s ability to service debt depends heavily on the realization of these assets or ongoing income generation from operations, which is not detailed. Therefore, lending approval should be conditional on obtaining further detailed cash flow forecasts, asset valuation confirmations, and guarantees or collateral arrangements.

2. Financial Strength:
   The balance sheet shows fixed assets of £77,000 with no current assets and current liabilities reported as zero. However, there are non-current liabilities of £52,530 indicating medium or long-term debt. Net assets stand at £24,470, which is modest but positive, suggesting the company has some equity buffer. The absence of current assets and net current assets at zero signals working capital constraints. As a micro entity, the company benefits from exemption from audit and simplified reporting, but this limits transparency. The shareholders’ funds of £24,470 reflect initial equity injections and retained earnings (if any), but the company has no employees and so minimal overhead costs.

3. Cash Flow Assessment:
   No current assets (no cash, receivables, or stock) and zero net current assets highlight very limited liquidity to meet short-term obligations. The company’s financial statements do not disclose cash flow statements, but working capital appears tight. The reliance on non-current liabilities to finance fixed assets means cash outflows for debt servicing must be carefully managed. Without operating cash inflows or liquid assets, the company may face pressure unless property sales or refinancing occurs. Monitoring cash inflows from property transactions and ability to meet debt repayments will be critical.

4. Monitoring Points:

• Regular updates on property portfolio valuation and sales progress.
• Detailed cash flow forecasts including debt repayment schedules.
• Review of any new liabilities or changes in asset base.
• Directors’ ability to inject additional capital if needed.
• Confirmation of ongoing operational activities and any contracts or revenue streams.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.