KHL PRESTIGIOUS PROPERTIES LIMITED

Executive Summary

KHL Prestigious Properties Limited is a new property letting company currently in a startup phase with a weak balance sheet and negative net assets. However, recent property acquisition financed by mortgage and director funding shows growth potential. Credit approval is conditional on continued director backing and close monitoring of liquidity and cash flow as the business ramps up operations.

KHL PRESTIGIOUS PROPERTIES LIMITED - Analysis Report

Company Number: 15514402

Analysis Date: 2025-07-29 17:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KHL Prestigious Properties Limited is a very recently incorporated property letting company with limited trading history. The latest accounts show a small net current liability position and negative shareholders funds (£1,317 deficit), reflecting startup phase losses and initial costs. However, the company has recently acquired a rental property financed through a mortgage and director funding, indicating management commitment and growth intent. Credit approval should be conditional on continued director support and monitoring of cash flow and debt service capacity as the property asset is leveraged. The absence of historical profitability and negative net assets require caution.

2. Financial Strength:

• Current Assets: £6,100 (mainly cash £6,000)
• Current Liabilities: £7,317
• Net Current Assets: -£1,217 (working capital deficit)
• Shareholders Funds: -£1,317 (negative equity)
• No fixed assets reported at balance sheet date, but significant property acquisition post year-end (£467,482 asset with £307,980 mortgage)
  The balance sheet at 31 March 2025 shows a weak financial position typical of a startup, with net current liabilities and negative equity. The post-balance sheet property purchase significantly improves the asset base but introduces mortgage debt. Overall, financial strength is currently fragile but improving with asset acquisition and director backing.

3. Cash Flow Assessment:

• Cash on hand is relatively low (£6,000) versus liabilities (£7,317), resulting in a slight liquidity shortfall at the year-end.
• The company has no employees, no trading history, and limited trade receivables (£100), indicating minimal operational cash generation so far.
• Post balance sheet property purchase funded by mortgage and director investment suggests reliance on external funding rather than internal cash flow.
• Going concern statement relies on director support.
  Liquidity and working capital are tight, and the company depends on ongoing director funding and mortgage financing to support operations and growth.

4. Monitoring Points:

• Track quarterly cash flows and liquidity to ensure timely servicing of mortgage interest and other liabilities.
• Monitor occupancy and rental income generation from the acquired property to assess operational cash flow improvements.
• Watch for any further capital injections or external financing to support asset maintenance and expansion.
• Review future filed accounts for improvements in net assets and profitability as the property portfolio develops.
• Assess director conduct and continued financial commitment given dependence on their support.