MIMOSA PROPERTY MANAGEMENT LTD

Executive Summary

MIMOSA PROPERTY MANAGEMENT LTD demonstrates a fragile financial position characterized by minimal equity, persistent working capital deficits, and very low cash reserves. While the company remains active and compliant with filing obligations, its liquidity constraints and limited asset base necessitate cautious, conditional credit approval with monitoring focused on cash flow and debtor collections. Additional security or guarantees are advisable to mitigate credit risk.

MIMOSA PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 12610722

Analysis Date: 2025-07-29 15:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   MIMOSA PROPERTY MANAGEMENT LTD is a small private limited company active in real estate management. The company exhibits very modest net asset levels (£166 at 2024 year end) and has a history of negative net current assets, though the shortfall narrowed from -£559 in 2023 to -£134 in 2024. Cash balances have reduced significantly to £103 in 2024 from £1,170 previously, signaling potential liquidity stress. The absence of employees and limited tangible fixed assets indicate a lean operation. The director has maintained timely filings with no audit requirements. Given the thin equity base, persistent working capital deficits, and low liquidity, credit facilities should be extended only under conditions such as secured lending or with strong guarantees. The company’s ability to service debt relies heavily on stable or improving cash flows, which currently appear constrained.

2. Financial Strength:
   The balance sheet shows very limited shareholders’ funds (£166), reflecting minimal retained earnings and modest fixed assets (£300 net). The company has consistently operated with net current liabilities, though there is a trend toward improvement in 2024. The increase in debtors (£1,000) in 2024 is notable but classified as long-term, limiting immediate cash conversion. The company’s capital structure is weak, with share capital at only £100 and no external equity injections indicated. Overall, financial strength is low, with limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Cash at bank is critically low at £103, a sharp decline from previous years. Current liabilities remain substantial at £1,237, exceeding current assets, which points to ongoing working capital pressures. The company has no employees, reducing overheads, but the cash position suggests limited ability to meet short-term obligations or unexpected expenses without additional funding. Debtors’ collection timing and reliability should be monitored closely, as this will be critical for liquidity.

4. Monitoring Points:

• Cash balances and liquidity trends on a quarterly basis.
• Movement and aging of debtors to assess cash conversion risk.
• Trends in current liabilities, especially taxes and social security, to avoid arrears.
• Profitability trends and any build-up in retained earnings to strengthen equity.
• Director’s plans for capital injection or external financing to improve financial resilience.