LANGLEY SUSTAINABLE URBAN EXTENSION LIMITED

Executive Summary

Langley Sustainable Urban Extension Limited is an early-stage building development company with modest equity and balanced working capital. The company benefits from strong backing by major housebuilding shareholders but has limited trading history and a lean financial position. Credit approval is recommended on a conditional basis with close monitoring of liquidity, trading performance, and shareholder support going forward.

LANGLEY SUSTAINABLE URBAN EXTENSION LIMITED - Analysis Report

Company Number: 14811601

Analysis Date: 2025-07-29 13:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Langley Sustainable Urban Extension Limited is a newly incorporated private limited company (incorporated April 2023) engaged in building project development (SIC 41100). The latest unaudited accounts show a modest net asset position of £9,524 with current assets almost balancing current liabilities. The company is supported by several substantial shareholders, all reputable housebuilders with 25-50% ownership stakes, which suggests strong backing. However, as a start-up with less than one full year of trading, limited financial history and relatively low equity base, the company carries typical early-stage risks. Approval for credit facilities should be conditional on ongoing monitoring of trading performance, cash flow, and receipt of updated financials to confirm sustainable operations and ability to meet obligations.

2. Financial Strength:
   The balance sheet at 30 April 2024 shows:

• Current assets of £640,289 (debtors £321,940, cash £318,349) versus current liabilities of £630,765, resulting in a small positive net current asset (working capital) of £9,524.
• Net assets equal to net current assets, as there are no fixed assets reported.
• Equity of only £9,524 comprising £300 share capital and £9,224 retained earnings (profit and loss account).
  The financial position is very lean with minimal equity buffer, typical for a start-up in early stages, but the company is not insolvent and has positive working capital.

3. Cash Flow Assessment:

• Cash at bank stands at £318,349 as at year-end, which is a reasonable liquidity buffer relative to current liabilities.
• Trade creditors are significant at £506,655, which should be carefully managed to maintain supplier confidence.
• The company has accrued income of £204,371, indicating expected cash inflows.
• The directors have confirmed the going concern basis is appropriate, implying management expects to meet liabilities as they fall due.
• Given the short trading history and current liabilities nearing current assets, liquidity must be closely monitored to ensure ongoing ability to meet short-term obligations.

4. Monitoring Points:

• Monitor updated financial statements to track revenue generation, profit margins, and cash flow trends as the company progresses beyond start-up phase.
• Watch working capital closely, specifically the balance between trade debtors and trade creditors, to avoid liquidity strains.
• Confirm that support from major shareholders (Vistry Homes, Countryside Properties, Taylor Wimpey, Bellway Homes) continues through potential equity injections or guarantees if required.
• Review director changes and management stability to assess governance quality.
• Track timely payment of corporation tax and other statutory obligations to mitigate regulatory risk.
• Assess any material contracts or project pipeline that may impact future revenue and cash flows.