LIMEGLEN PROPERTY MANAGEMENT LIMITED

Executive Summary

Limeglen Property Management Limited currently displays weak financial health characterized by large working capital deficits, declining net assets, and limited liquidity. While it holds significant investment property, the high level of current liabilities and minimal cash reduce confidence in its ability to meet short-term obligations. Credit facilities would be considered high risk without substantial improvement in financial metrics or liquidity support.

LIMEGLEN PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 12642287

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: DECLINE
   Limeglen Property Management Limited exhibits significant liquidity risk and financial stress. The company has persistent net current liabilities exceeding £2.6 million over the last five years, indicating a working capital deficit and potential difficulty in meeting short-term obligations. Despite holding investment property valued at £2.9 million, the company’s current liabilities are almost as high, and cash balances are minimal (~£10k), limiting ability to service debt or unexpected outflows. The declining net assets (from £582k in 2021 to £235k in 2024) and the reported deficit in 2024 reinforce concerns over profitability and sustainability. The absence of an audit and reliance on director valuations for property also inject uncertainty into asset quality. Directors appear stable with no disqualifications, but overall financial metrics suggest weak creditworthiness at present.

2. Financial Strength
   The balance sheet is heavily leveraged with investment property as the main asset (£2.9 million) offset by substantial current liabilities (£2.66 million). The company’s net current liabilities position (-£2.65 million) signals poor short-term financial health and indicates that current liabilities far exceed liquid assets and receivables. The net assets of £235k, representing shareholders’ funds, have decreased sharply over recent years, impacted by a £185k deficit in the latest year. The decline in property valuation by £350k in 2024 further erodes net asset value. The minimal share capital (£10) and negative retained earnings trajectory limit cushion against adverse business conditions.

3. Cash Flow Assessment
   Cash at bank is low at £10,416, insufficient to cover current liabilities of £2.66 million. The company’s working capital deficit reflects an ongoing liquidity strain, which may impair its ability to meet immediate creditor demands without refinancing or asset disposals. Absence of detailed income statement data limits precise cash flow analysis, but the reported loss and declining net assets imply operating cash flow challenges. Reliance on property revaluations and potential sales may be necessary to generate cash, but these are uncertain and not guaranteed in the short term.

4. Monitoring Points

• Movement in current liabilities and liquidity ratios to detect further deterioration or improvement.
• Changes in investment property valuations, as significant impairment could worsen financial position.
• Operating results and profitability trends once income statements are available.
• Cash flow statements to assess real cash generation capacity.
• Directors’ actions on debt restructuring or asset sales to improve liquidity.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance.