Company Number: 13035652

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KMGS Properties Ltd demonstrates an improving net asset position and stable fixed asset values predominantly in real estate investment. However, the company carries a significant long-term liability (£142,770) including a mortgage and a related party loan. The absence of detailed profit and loss data limits full assessment of operating profitability and cash generation. Conditional approval is recommended, contingent upon satisfactory ongoing monitoring of cash flow and debt servicing given the leverage and reliance on property valuations.

2. Financial Strength:
   The company’s net assets have increased from £13,136 in 2023 to £21,874 in 2024, supported by a revaluation uplift of the investment property by £7,000. Fixed assets are predominantly investment property valued at £164,000, up from £157,000 the previous year. Shareholders’ funds have improved with retained earnings moving from a deficit of (£1,007) to a positive £2,061. Current assets of £7,036 comfortably cover current liabilities of £2,653, indicating sound short-term financial health. However, the large long-term liabilities relative to net assets denote moderate financial leverage.

3. Cash Flow Assessment:
   Cash balances have increased from £4,633 to £6,632, reflecting improved liquidity. Current liabilities are low (£2,653) and easily covered by current assets (£7,036), resulting in net current assets of £4,383. This positive working capital position implies the company can meet its short-term obligations. However, the sizeable long-term mortgage and related party loan require consistent income generation, presumably from rental or property sales activities, to service debt over time. Absence of profit and cash flow statements necessitates careful monitoring of operational cash inflows.

4. Monitoring Points:

• Operating cash flow and profitability trends once full accounts including profit and loss are available.
• Stability and trends in property valuations, as these significantly impact net asset value and loan security.
• Repayment schedule and servicing ability for the £142,770 long-term debt, especially the related party loan element.
• Any changes in director or ownership structure that could affect control or management quality.
• Timely filing of future accounts and confirmation statements to maintain compliance and transparency.