Company Number: 13154226

Analysis Date: 2025-07-29 20:57 UTC

1. Credit Opinion: APPROVE
   Long & Short Properties Ltd shows a positive incremental growth in net assets and working capital over its three years of operation, indicating improving financial stability. The company is a micro-entity with modest asset size but maintains a positive net current asset position and no overdue filings, reflecting sound management discipline. The director’s background as a builder aligns with the real estate management SIC code, suggesting relevant operational expertise. Given the limited scale and early stage, credit exposure should be modest but the company demonstrates the capability to meet short-term liabilities and service credit facilities.

2. Financial Strength:
   The balance sheet is healthy for a micro-entity, with net assets growing from £655 in 2021 to £1,659 in 2024. The increase in current assets from £1,205 to £8,174 mainly drives this improvement, while current liabilities remain controlled, rising from £550 to £6,515. Shareholders’ funds have increased proportionally, indicating retained earnings or injections supporting net worth. The absence of fixed assets suggests an asset-light business model focusing on fee-based real estate management rather than capital-intensive investment. Overall, the company’s financial position is stable but limited in scale.

3. Cash Flow Assessment:
   The net current assets of £1,659 as of January 2024 reveal a positive working capital position, indicating sufficient liquidity to cover short-term obligations. The current ratio (current assets/current liabilities) is approximately 1.25, which is acceptable for a micro-entity and suggests no immediate liquidity concerns. Given the small size and single employee, operating cash flow requirements are likely minimal. While detailed cash flow statements are not provided, the steady growth in net assets and controlled liabilities imply prudent cash management.

4. Monitoring Points:

• Maintain vigilance on the growth of current liabilities relative to current assets to avoid liquidity pressure.
• Monitor the company’s ability to generate consistent fee income and maintain or grow net assets.
• Watch for any changes in director or management that may affect operational continuity.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risk.
• Assess impact of any economic downturns on the real estate management sector that could affect cash flow.