L&R PROPERTY AGENTS LTD

Executive Summary

L&R Property Agents Ltd is a newly established micro-entity showing slight improvement in net assets and maintaining minimal positive working capital. The company relies on director funding to support operations, indicating limited internal cash flow generation. Conditional credit approval is recommended with close monitoring of liquidity, director advances, and financial performance going forward.

L&R PROPERTY AGENTS LTD - Analysis Report

Company Number: 13951733

Analysis Date: 2025-07-20 13:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   L&R Property Agents Ltd is a micro-entity that has shown modest growth in net assets from £184 to £1,212 over the last year, indicating some improvement in financial footing. However, the company operates with very limited fixed assets (£827) and current net working capital is positive but marginal (£385), suggesting thin liquidity buffers. The directors have subsidized the company with advances, which were partially repaid, indicating reliance on director funding to support operations. Given the company’s short trading history (incorporated in 2022) and thin equity base, credit approval should be conditional on continued close monitoring of cash flow and working capital to ensure ongoing debt servicing capability.

2. Financial Strength:
   The company’s balance sheet reflects a typical start-up micro-entity profile: low fixed assets and very modest net assets (£1,212). Current assets (£15,313) barely cover current liabilities (£14,928), yielding a small positive net current asset position. Shareholders’ funds have increased, reflecting the accumulation of retained earnings or capital injection. The reliance on director advances (noted in the accounts) for funding reduces financial independence and increases risk if director support is withdrawn. Overall, the financial strength is weak but stable for its size and age.

3. Cash Flow Assessment:
   The company’s current assets mainly include cash and debtors sufficient to cover short-term liabilities, but the net working capital cushion is minimal (£385). The presence of director subsidies and repayments indicates that internal cash generation may be insufficient to cover operational needs fully. The increase in average employees from 1 to 2 suggests growing operational expenses. Without audited cash flow statements, the liquidity position appears fragile and would require ongoing support or improvements in turnover and cash collection for sustained debt service.

4. Monitoring Points:

• Regular review of cash flow statements and debtor collections to ensure liquidity adequacy.
• Monitoring director advances and repayments to confirm ongoing support or reduction in reliance.
• Tracking net current assets and net asset growth to assess financial strengthening or deterioration.
• Review of turnover and profitability trends once available to evaluate business growth and resilience.
• Ensuring timely filing of accounts and confirmation statements to maintain compliance.