Company Number: 13124011

Analysis Date: 2025-07-20 11:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M Cox Properties Ltd demonstrates modest but improving net asset growth and equity, reflecting increasing financial stability since inception in 2021. However, the company carries significant long-term liabilities relative to its current assets and equity, indicating a leveraged position. The absence of employees and reliance on property letting may limit operational flexibility. Credit approval is recommended with conditions: close monitoring of debt servicing capability and liquidity, and obtaining updated financials to confirm ongoing performance before increasing credit exposure.

2. Financial Strength:
   The company’s balance sheet shows fixed assets consistent at £442,634, representing property holdings. Net assets increased from negative (£553) at 2021 year-end to £38,009 at 2024 year-end, driven by gradual equity build-up. Long-term creditors remain substantial (£422,250 in 2024) but have decreased from prior years, indicating some debt reduction. Current assets are low (£23,636) but exceed current liabilities slightly, yielding positive working capital (£17,625). Overall, the financial structure is leveraged but stable with modest equity cushion.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and short-term receivables, totaling £23,636, which covers current liabilities of £4,148 comfortably, indicating short-term liquidity is adequate. However, high non-current liabilities (£422,250) necessitate reliable cash flow from property lettings to meet debt obligations. The absence of employees and operational expenses suggests controlled cash outflows, but reliance on rental income makes cash flow sensitive to tenant stability and market conditions. Working capital is positive but thin, requiring attention.

4. Monitoring Points:

• Track quarterly cash flow statements to ensure debt service coverage remains strong.
• Monitor any changes in tenancy or rental income, as this is the core revenue source.
• Watch for shifts in long-term liabilities and refinancing risk.
• Review subsequent year-end accounts for continued equity growth and asset valuation.
• Confirm no adverse director conduct or changes in management that could affect governance.