LEEDS PROPERTY INVENTORIES LTD

Executive Summary

Leeds Property Inventories Ltd is a micro-sized, newly established company with limited financial resources and a tight liquidity position. The company’s recent accounts show a shift to negative net assets and minimal working capital, warranting cautious credit exposure. Approval is recommended on a conditional basis with close monitoring of cash flow and financial performance.

LEEDS PROPERTY INVENTORIES LTD - Analysis Report

Company Number: 14720519

Analysis Date: 2025-07-20 15:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Leeds Property Inventories Ltd is a very recently established micro-entity with limited financial history. The company shows a transition from positive net assets (£5,045 as of 2024) to net liabilities of £1,001 in 2025 primarily due to an increase in accruals and deferred income. The minimal net current assets (£31) as of the last reporting date indicate a very tight working capital position. While the company is active and compliant with filing requirements, the financials suggest limited buffer to absorb shocks or meet unexpected cash demands. Given the very early stage of operations and the presence of a single director who is also the primary owner, credit facilities should be provided cautiously, possibly with small limits and subject to regular financial monitoring and performance updates.

2. Financial Strength:
   The balance sheet reflects the micro company status, with very modest current assets (£5,414) and almost equivalent current liabilities (£5,383) resulting in negligible net current assets. The shift from positive equity in 2024 to negative equity in 2025 is concerning but not unusual for a young company investing in growth or adjusting to timing differences in revenue and expenses recognition. The absence of fixed assets or long-term borrowings reduces complexity but also indicates no tangible asset base for security. Overall, financial strength is weak and dependent on future profitability and cash generation.

3. Cash Flow Assessment:
   With net current assets of only £31, liquidity is extremely tight. The company’s ability to meet short-term obligations depends heavily on timely collection of receivables and controlled management of payables and accruals. The increase in accruals and deferred income suggests possible timing mismatches in cash flows. No detailed cash flow statement is provided, but the micro size and minimal assets imply limited liquidity reserves. Working capital management will be critical to avoid cash flow shortfalls.

4. Monitoring Points:

• Quarterly or biannual updates on cash flow and working capital status to detect liquidity strain early
• Profitability trends and movements in net assets to assess financial trajectory
• Changes in director ownership or management which could affect governance or risk profile
• Any new debt or credit facilities taken on and their servicing performance
• Timeliness and completeness of statutory filings to ensure ongoing compliance