KC PROPERTY GROUP LIMITED

Executive Summary

KC Property Group Limited is a newly incorporated micro-entity with an asset-backed secured loan and weak liquidity reflected by significant current liabilities exceeding current assets. While the fixed asset base provides collateral, working capital and cash flow constraints present risks for credit extension. Conditional approval is recommended with close monitoring of liquidity, debt servicing, and operational cash flows to mitigate repayment risk.

KC PROPERTY GROUP LIMITED - Analysis Report

Company Number: 13879102

Analysis Date: 2025-07-20 13:38 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. KC Property Group Limited is a very young micro-entity operating in real estate letting and trading, with limited financial history. The company has a modest net asset base (£7,793) and a significant long-term loan secured against property (£247,500). Current liabilities exceed current assets by a wide margin, signaling a working capital deficit. However, the fixed charge on property and the fact that the loan is long-term somewhat mitigate immediate liquidity pressures. The directors are clearly identified and hold significant ownership stakes, suggesting aligned interests. Credit approval should be conditional on the borrower maintaining or improving liquidity and servicing the secured debt promptly.

2. Financial Strength:
   The balance sheet shows fixed assets of £348,323, likely real estate, which supports the company’s activities. Shareholders’ funds have increased slightly from £2,619 in 2023 to £7,793 in 2024, indicating some retention of earnings or capital injection. However, net current liabilities stand at approximately £93,000, reflecting an imbalance between short-term obligations (£95,584 creditors due within one year) and liquid assets (£2,554). The company carries a substantial secured loan (£247,500) that represents a significant leverage ratio relative to equity. Overall, financial strength is weak due to poor liquidity and high gearing, but the fixed asset base provides collateral value.

3. Cash Flow Assessment:
   Current assets are very limited and mostly non-cash (likely debtors or small cash balances), insufficient to cover short-term liabilities, signaling potential cash flow stress. With only two employees and minimal current assets, working capital management is critical. The company’s ability to generate operating cash flow is not disclosed, but operating in real estate with asset-backed borrowing suggests cash inflows depend on rental income or asset sales. The lack of a profit and loss account in the filings limits visibility on profitability and cash generation. Careful monitoring of cash flow and adherence to debt repayment schedules is essential.

4. Monitoring Points:

• Liquidity ratios and working capital position at each reporting period.
• Servicing of secured debt and compliance with loan covenants.
• Profitability and cash flow trends once profit and loss data become available.
• Any material changes in asset valuations or loan terms.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Director conduct and any changes in management or ownership structure.