L SHIPLEY PROPERTY DEVELOPMENTS LTD

Executive Summary

L Shipley Property Developments Ltd exhibits a weak financial position with persistent negative equity and working capital deficits, raising concerns about its ability to meet short-term liabilities. The company operates at a micro scale with limited operational activity and no employees, increasing credit risk. Without improvement in liquidity or capital structure, extending credit is not recommended at this stage.

L SHIPLEY PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 13510166

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: DECLINE. L Shipley Property Developments Ltd shows persistent net liabilities and negative shareholders’ funds over the last three years, indicating weak financial stability. The company’s current liabilities consistently exceed current assets, resulting in negative net current assets which signals potential liquidity issues. The absence of employees and very limited operational scale (micro entity) further suggests constrained cash inflows. Without evidence of external capital injection or improved trading performance, the risk of non-payment on credit facilities is high.

2. Financial Strength: The balance sheet reveals a net liability position of £11,056 as of 31 July 2024, worsening from a net liability of £7,004 the prior year. Current liabilities (£1.77m) slightly exceed current assets (£1.76m), indicating working capital deficits. The company’s asset base is primarily current assets, but no fixed assets are reported, which limits collateral availability. The negative equity position and small scale imply limited buffer against financial stress.

3. Cash Flow Assessment: The consistent negative net current assets highlight a liquidity shortfall, with current liabilities marginally surpassing current assets each year. There is no reported employment or operational scale suggesting likely reliance on shareholder funding or other non-operating sources for cash flow. The lack of audit and micro-entity accounting standards usage imply limited financial transparency. This raises concerns about the sustainability of cash flows to meet short-term obligations.

4. Monitoring Points:

• Monitor changes in net current assets and shareholder funds for any improvement.
• Watch for additional capital injections or third-party financing.
• Track operational activity and revenue growth to assess cash generation capacity.
• Review director changes or any significant corporate actions that might impact financial health.
• Observe timely filing of accounts and confirmation statements as an indicator of governance quality.