Company Number: 12939994

Analysis Date: 2025-07-19 12:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NELJAM PROPERTY LIMITED shows a stable asset base primarily in fixed assets related to real estate. However, current assets are very low (£2,319) compared to current liabilities falling due within one year (£57,133), indicating a liquidity strain. The company’s net assets are positive but modest (£8,227) and have only slightly improved over recent years. Given the nature of property investment, which often involves long-term holdings and financing, the company’s ability to service short-term obligations depends on refinancing or asset disposals. Approval is conditional on providing confirmation of secured financing arrangements or a plan to improve liquidity.

2. Financial Strength:
   The company holds fixed assets valued at approximately £198k consistently over the last five years, showing no depreciation or disposals. Shareholders’ funds have increased gradually from £451 in 2020 to £8,227 in 2024, reflecting small accumulated profits or capital injections. Current liabilities exceeding £134k beyond one year suggest long-term debt financing. The balance sheet shows a levered position with limited equity buffer, indicating moderate financial risk if asset values decline or rental income (if any) is disrupted.

3. Cash Flow Assessment:
   Current assets have declined from £9,481 in 2021 to £2,319 in 2024, signaling reduced liquid resources. Net current assets are negative, approximately -£55k, reflecting potential short-term cash flow challenges. The company has no employees, implying low operational cash outflows, but the liquidity gap against current liabilities is significant. Without access to additional working capital or refinancing, the company may struggle to meet immediate obligations.

4. Monitoring Points:

• Liquidity ratios, particularly current ratio and quick ratio, to monitor short-term solvency.
• Debt servicing capability and confirmation of refinancing or repayment schedules for creditor amounts due within one year.
• Any changes in asset valuations or disposals that could impact net assets.
• Cash flow forecasts and actual cash position updates quarterly.