METCALFE PROPERTY GROUP LTD

Executive Summary

Metcalfe Property Group Ltd has shown a modest recovery in net asset position but continues to face significant liquidity challenges due to a large working capital deficit. The company’s substantial fixed assets underpin its balance sheet; however, short-term cash flow risks warrant conditional credit approval with ongoing monitoring. Continued operational cash flow stability and management of current liabilities are critical for credit risk mitigation.

METCALFE PROPERTY GROUP LTD - Analysis Report

Company Number: 13118016

Analysis Date: 2025-07-20 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Metcalfe Property Group Ltd is a micro private limited company primarily engaged in letting and operating its own or leased real estate. The company shows a positive turnaround in net assets as of the latest accounts (year ending March 2024), moving from a net liability position of -£11k in 2023 to a small positive net asset balance of £9k in 2024. However, the company continues to exhibit significant working capital deficits and high current liabilities relative to current assets, which raises concerns about short-term liquidity and its ability to meet near-term obligations. Approval is recommended on a conditional basis, subject to further monitoring of cash flow management and confirmation of stable rental income streams or alternative liquidity support.

2. Financial Strength:

• Fixed assets are substantial at approximately £1 million, representing the company's core property holdings.
• Current assets stand at £36k, which is insufficient to cover current liabilities of £440k, resulting in a net current liabilities position of approximately -£404k.
• The company carries significant long-term liabilities (£569k), likely related to financing of the property assets.
• Despite the improvement in net assets, equity remains minimal at £9.2k, indicating very thin capital buffers.
• The company has maintained a single employee and minimal share capital (£100), suggesting a lean operational structure.

3. Cash Flow Assessment:

• The negative net current assets position indicates potential liquidity stress. The company’s ability to generate sufficient operational cash flow to cover short-term debts is questionable without additional capital infusion or refinancing.
• The absence of a profit and loss account filing limits insight into profitability and cash generation from operations.
• Given the nature of the business (property letting), rental income consistency and timely collection are critical to sustaining liquidity.
• Close attention should be paid to creditor payment terms and any reliance on overdrafts or short-term loans.

4. Monitoring Points:

• Quarterly updates on cash flow statements and rent roll status to assess ongoing liquidity.
• Review of any refinancing arrangements or capital injections to improve working capital.
• Watch for timely filing of future accounts and confirmation statements to ensure regulatory compliance.
• Monitor any changes in director status or company structure, as well as market conditions affecting property values and rental demand.
• Track any increase in current liabilities or deterioration in net asset position.