Company Number: 13816005

Analysis Date: 2025-07-29 15:31 UTC

1. Credit Opinion: DECLINE
   Lili Gra Estates Ltd shows significant liquidity stress and a weak financial position. The company has net current liabilities of £127,747, meaning current liabilities (£366,581) far exceed current assets (cash £25,706, no other current assets reported). Despite holding tangible fixed assets (land and buildings) valued at £520,034, the large borrowings (£520,034 total, split between current and non-current) create a heavy debt burden. The minimal net assets of £25,706 and absence of trading or profit data (no turnover or P&L disclosed) raise concerns about its ability to service debt and meet short-term obligations. The company employs no staff and appears not to generate operating cash flow, increasing reliance on external funding or asset sales. Without evidence of positive cash flow or earnings, the risk of default is high.

2. Financial Strength:
   The balance sheet is leveraged with a high debt-to-asset ratio. Fixed assets at £520,034 are financed largely through loans (£520,034 total borrowings), leaving shareholders’ equity at a very low £25,706. The negative working capital position indicates that liquidity is insufficient to cover short-term liabilities. The company does not appear to have reserves or retained earnings beyond a nominal amount (£25,695 retained earnings). This fragile equity base and heavy debt load diminish financial resilience.

3. Cash Flow Assessment:
   Cash reserves are low at £25,706, with no reported revenue or profit figures to suggest positive operating cash flow. The absence of employees and lack of turnover disclosures imply limited business activity. Current borrowings of £153,453 are due within one year, which significantly outweigh cash holdings, creating immediate liquidity risks. Working capital is negative by £127,747, indicating short-term cash flow constraints and potential difficulty in meeting creditors.

4. Monitoring Points:

• Cash flow generation and operating profit trends going forward.
• Ability to reduce current liabilities or refinance short-term debt.
• Any asset disposals or capital injections to improve liquidity.
• Timely filing of future accounts and confirmation statements.
• Changes in debt structure or renegotiation terms with lenders.