NEO RESIDENTIAL LTD

Executive Summary

Neo Residential Ltd is a newly formed real estate management company with negligible financial resources and no trading history. Its balance sheet and cash flow position are minimal, posing a very high credit risk. Without demonstrated operational activity or capital support, credit facilities cannot be recommended at this stage.

NEO RESIDENTIAL LTD - Analysis Report

Company Number: 13944157

Analysis Date: 2025-07-29 13:54 UTC

1. Credit Opinion: DECLINE – Neo Residential Ltd is a very newly incorporated company (less than 2 years old) with minimal financial substance. The latest accounts show nominal net assets and cash of only £2, indicating no meaningful operating activity or financial buffer. There is no evidence of revenue, profit, or growth, and the company operates in real estate management and letting, which typically requires capital or asset backing. Given the extremely limited financial footprint and lack of trading history, the company does not demonstrate an ability to service debt or absorb economic shocks. Without additional security or guarantees, offering credit facilities would pose a high risk.

2. Financial Strength: The balance sheet is essentially dormant with net assets and shareholders’ funds of just £2. Current assets consist solely of £2 in cash, matched by equivalent net current assets. There are no fixed assets, no recorded liabilities, and no retained earnings or reserves. The capital structure is minimal and wholly equity-funded by two directors each holding 50%. This indicates the company is at a very early stage with no substantive financial strength or operational scale.

3. Cash Flow Assessment: With only £2 cash on hand reported in the accounts, liquidity is negligible. The company employs 2 persons but does not report turnover or profit, so the ability to generate operating cash flow is unproven. The working capital position is flat with no trade debtors or creditors disclosed. This lack of cash flow and working capital capacity means the company has no buffer to meet obligations or withstand financial stress.

4. Monitoring Points:

• Monitor future filed accounts for evidence of revenue generation and profit.
• Watch for increases in cash balances and net current assets indicating improved liquidity.
• Track any capital injections or asset acquisitions that improve financial strength.
• Review director conduct and any changes in ownership or management that may impact credit risk.
• Monitor payment behavior if any trade references or credit accounts are established.