Company Number: 13578386

Analysis Date: 2025-07-29 15:54 UTC

1. Credit Opinion: DECLINE
   Larnie Properties Limited demonstrates a weak financial position with persistent net current liabilities and negative shareholders’ funds. The company has consistently reported negative equity since incorporation, indicating ongoing losses or inadequate capitalisation. Cash reserves have sharply declined from £278,603 in 2023 to £37,486 in 2024, while current liabilities remain significant at £45,530. The company’s inability to maintain positive net current assets suggests liquidity constraints and potential difficulty in meeting short-term obligations. Additionally, the absence of audited financials and limited operational scale (no employees) further increases risk. Given these factors, extending credit without substantial security or guarantees is not advisable.

2. Financial Strength:
   The balance sheet reveals ongoing financial distress. Shareholders’ funds are negative (£-8,064 in 2024), reflecting accumulated losses or insufficient equity injection. Net current assets remain negative (£-8,044), driven by current liabilities exceeding cash and other current assets. The company holds no reported fixed or investment assets to offset liabilities, limiting collateral value. The deterioration in cash from previous years suggests operating or financing cash outflows are not being replenished adequately. Overall, the company’s capital structure and asset base are weak, undermining its financial resilience.

3. Cash Flow Assessment:
   Cash at bank is low and has decreased significantly year-on-year, indicating potential cash flow issues. The working capital deficit implies the company might struggle to meet immediate liabilities without external funding. The absence of trade debtors or inventory data suggests limited operational activity or revenue generation. The company is reliant on other creditors and possibly shareholder support to sustain operations. Lack of positive cash flow generation and reliance on external funding weaken liquidity and raise concern over ongoing viability.

4. Monitoring Points:

• Cash balances and liquidity trends to detect worsening short-term payment ability
• Changes in current liabilities and creditor payment terms
• Equity injections or capital restructuring to improve balance sheet strength
• Operational performance indicators if available (turnover, profit margins)
• Director and shareholder actions indicating financial support or restructuring plans