Company Number: 15003828

Analysis Date: 2025-07-20 12:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LOQUI PROPERTIES LIMITED is a newly incorporated private limited company (July 2023) engaged in buying and selling own real estate. The company shows a significant net liability position (£15,455 negative net assets) due to a sizeable long-term loan (£543,559) from a related party (Loqui Limited). While the investment property has a fair value of £520,000, this is largely offset by the loan, putting pressure on equity. The company has minimal current assets (£8,879 cash and £100 debtors) and current liabilities (£776), generating positive net current assets but limited liquidity. Given the lack of trading history and negative equity, credit approval should be conditional on further assurances of capital support or cash flow forecasts that demonstrate the company’s ability to service debt, especially the related party loan.

2. Financial Strength:
   The balance sheet shows substantial fixed assets (£520,001 investment property) but an overall net liability position due to the long-term loan from the related entity. Shareholders’ funds are negative, indicating the company is currently undercapitalized relative to its liabilities. The company has no external borrowings beyond the intra-group loan, and current liabilities are minimal. The negative equity and reliance on intercompany funding present a credit risk, but the high-value investment property provides a strong asset base if it can be realized or leveraged.

3. Cash Flow Assessment:
   Cash and equivalents are low (£8,779), and current liabilities are minimal (£776), resulting in positive net current assets (£8,103) and some short-term liquidity cushion. However, there is no trading income or profit disclosed, and the directors have not provided a profit and loss account in the filing. The company is likely reliant on funding from the parent or related party to meet obligations. Monitoring cash flow projections and capital injections will be critical to ensure ongoing liquidity and debt servicing capability.

4. Monitoring Points:

• Capital injections or intercompany loan arrangements to cover operating costs and debt servicing.
• Fair value and marketability of the investment property to ascertain collateral value.
• Future trading results and profitability trends as the company develops.
• Timely filing of future accounts and confirmation statements to monitor any deterioration.
• Director and related party transactions for any changes impacting financial support.