MANOR (2012) LTD

Executive Summary

Manor (2012) Ltd is a micro private company operating in the real estate letting sector with a weak balance sheet characterized by negative equity and significant working capital deficits. The company’s large investment in fixed assets is funded primarily by debt, resulting in strained liquidity and uncertain debt servicing ability. Given these factors and limited financial history, credit risk is high, and approval for credit facilities is not recommended at this stage.

MANOR (2012) LTD - Analysis Report

Company Number: SC695601

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: DECLINE. Manor (2012) Ltd shows a weak financial position with negative net assets and significant net current liabilities, indicating poor short-term liquidity and an over-reliance on long-term creditors. The company’s micro-entity status and limited trading history since incorporation in 2021 provide minimal financial track record. The large increase in fixed assets in the latest year is funded by substantial long-term liabilities, which raises concerns about debt servicing capacity. Without positive equity or working capital and no evidence of profitability or cash flow generation, the risk of default is high.

2. Financial Strength: The balance sheet reveals a net liability position of £1,243 as of July 2024, improving from a deeper deficit of £8,876 the prior year but still negative. Fixed assets increased markedly from £260k to £1.7m, likely due to property or real estate acquisitions, consistent with the SIC code for letting or operating own/leased real estate. However, current liabilities are £1.12m versus current assets of only £30k, causing a net current liability of £592k and indicating severe working capital strain. The company’s equity is negative, suggesting accumulated losses or capital erosion. Reliance on long-term creditors is evident, but absence of positive shareholder funds undermines financial resilience.

3. Cash Flow Assessment: Current assets, including cash and receivables, are minimal relative to current liabilities, indicating tight liquidity and limited ability to meet short-term obligations from operating cash flows. Negative net current assets imply working capital deficits, which could pressure the company’s ability to fund day-to-day operations without additional external financing. The increase in fixed assets funded by debt suggests cash outflows invested in capital expenditure rather than operational cash generation. Absence of income statement data limits detailed cash flow analysis, but the balance sheet structure flags liquidity risk.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to track short-term solvency.
• Debt servicing capacity: Interest coverage and cash flow adequacy once profit and loss data available.
• Fixed asset utilization and valuation, especially given the substantial increase in fixed assets.
• Equity position and trend in net assets to monitor recovery or further erosion.
• Payment behavior and any overdue filings or director changes.
• Any new borrowings or capital injections to support working capital.