MISILO PROPERTY MANAGEMENT LTD

Executive Summary

MISILO PROPERTY MANAGEMENT LTD demonstrates modest profitability and positive working capital, supporting limited credit exposure. However, low turnover, a small equity base, and dividend payments exceeding profits indicate liquidity constraints. Conditional approval is recommended with close financial monitoring and exposure limits.

MISILO PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13120728

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL MISILO PROPERTY MANAGEMENT LTD is a small, active private limited company with a clear trading history since incorporation in 2021. It shows modest profitability and positive net current assets, indicating an ability to meet short-term liabilities. However, turnover is low and somewhat volatile (ranging from £15.8k to £20.5k), with limited fixed assets and a very small equity base (£698 net assets as of Jan 2024). Dividends paid in excess of profits in recent years suggest caution regarding retained liquidity. Overall, the company can likely service modest credit facilities but requires close monitoring and should be granted credit on a conditional basis, limiting exposure and requiring up-to-date financials.

2. Financial Strength:

• Net assets have decreased from £916 in 2023 to £698 in 2024, showing a slight decline in equity.
• The balance sheet is simple, with no fixed assets and minimal share capital (£1).
• Net current assets are positive at £698, reflecting working capital adequacy.
• The company’s financial reserves are low, and reliance on debtors and cash is critical.
• The small scale and limited asset base reduce financial resilience to adverse events.

3. Cash Flow Assessment:

• Cash on hand decreased from £881 in 2023 to £548 in 2024, a negative trend.
• Current liabilities have reduced from £750 to £520, helping working capital.
• Debtors remain a significant component of current assets (£670), indicating dependency on timely collections.
• The company paid dividends of £1,800 in 2024 despite a modest profit of £1,582, which may strain liquidity.
• Working capital is positive but tight, suggesting limited buffer for unexpected expenses or downturns.

4. Monitoring Points:

• Regular review of cash flow statements to ensure debtor collections remain timely.
• Watch profitability trends and dividend payments to avoid over-distribution.
• Monitor turnover trends for stability or growth; turnover has been modest and fluctuating.
• Review any changes in current liabilities and potential new debt commitments.
• Confirm director’s ongoing financial stewardship and check for any change in management or control that could affect credit risk.