KEW10 PROPERTIES LTD

Executive Summary

Kew10 Properties Ltd shows substantial fixed asset growth but remains financially leveraged with negative net assets and significant current liabilities exceeding current assets, indicating liquidity pressure. Credit approval is conditional, requiring close monitoring of cash flow, debt levels, and equity restoration efforts to ensure ongoing repayment capacity. The company’s financial resilience is currently limited, necessitating cautious credit exposure.

KEW10 PROPERTIES LTD - Analysis Report

Company Number: 13108857

Analysis Date: 2025-07-20 12:14 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Kew10 Properties Ltd operates within the real estate management and letting sector and holds significant fixed assets (£689,958 as of Jan 2024), indicating investment in property holdings. However, the company exhibits ongoing negative net assets (-£17,204) and persistent net current liabilities (-£226,920), reflecting a weak equity position and short-term liquidity challenges. The substantial increase in long-term creditors (£480,242) suggests reliance on debt financing. While the company is active and compliant with filings, these financial stress indicators warrant cautious credit exposure with conditions such as regular financial monitoring and limits on additional borrowing until equity is strengthened.

2. Financial Strength:
   The balance sheet shows growth in fixed assets over three years, from £153,277 (Jan 2021) to £689,958 (Jan 2024), which is a positive sign of asset base development. However, the company consistently reports negative shareholders’ funds, indicating accumulated losses or over-leveraging. The rise in creditors, both current and long-term, has outpaced asset growth, causing net liabilities to increase. This capital structure implies financial vulnerability and limited buffer against market or operational shocks. The micro-entity status means minimal reporting transparency, but the trend highlights a need for improved equity funding or profitability enhancement.

3. Cash Flow Assessment:
   Current assets are minimal (~£4,567), primarily likely cash or receivables, while current liabilities are very high (~£480,242 total creditors including long-term). The net current liabilities position (-£226,920) signals insufficient working capital to cover short-term obligations, raising concerns about liquidity and the ability to meet immediate debt service requirements without refinancing or asset disposals. The business currently depends substantially on creditor finance, which may be difficult to sustain without improved cash flow. There is no explicit cash flow statement, but the balance sheet liquidity metrics strongly suggest cash flow constraints.

4. Monitoring Points:

• Track quarterly or interim financials for changes in net current liabilities and net assets to detect improvement or further deterioration.
• Monitor debt repayment schedules and creditor composition to assess refinancing risk.
• Review any capital injections or profit generation that could restore positive equity.
• Keep watch on director activity and company filings to ensure compliance and absence of financial distress signals (e.g., late filings, director changes).
• Assess market conditions in the real estate sector that could impact asset valuations and rental income.