NES PROPERTIES LTD

Executive Summary

NES Properties Ltd has shown a significant financial improvement in the latest year, reversing prior losses to achieve positive net assets and profitability. Despite the small scale and low cash reserves, the company currently maintains adequate liquidity to cover short-term liabilities. Conditional credit approval is recommended, with ongoing monitoring of profitability and cash flow to mitigate risk.

NES PROPERTIES LTD - Analysis Report

Company Number: 12619169

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NES Properties Ltd has demonstrated a turnaround in financial performance in the latest year ending May 2024, moving from consistent losses and negative net assets to a positive net asset position (£1,396) and retained earnings (£1,296). However, the scale of operations remains very small with minimal cash balances (£2,375) and modest liabilities (£979). The absence of employees and reliance on a single director may limit operational resilience. Given these factors, credit approval is conditional on close monitoring of continued profitability and cash flow stability to ensure the company can service any new credit facilities.

2. Financial Strength:
   The company transitioned from negative shareholders’ funds of (£1,180) in 2023 to positive equity of £1,396 in 2024, reflecting a reported profit of £2,376 for the year. Current liabilities remain low and stable. The balance sheet is very modest in size with no fixed assets reported. The company’s small share capital (£100) and the absence of long-term liabilities suggest limited financial risk exposure. Overall, the financial strength is currently weak but improving.

3. Cash Flow Assessment:
   Cash on hand is low at £2,375 but sufficient to meet current liabilities of £979, yielding positive net current assets of £1,396. This indicates adequate short-term liquidity at present. The company’s working capital position has improved significantly from negative in prior years, which reduces immediate liquidity risk. However, the low absolute cash balance and lack of employees mean cash flow could be vulnerable to business disruptions or unexpected expenses.

4. Monitoring Points:

• Profitability trends in future accounting periods to confirm sustained turnaround.
• Cash flow cycles and ability to maintain positive working capital.
• Exposure to director-related transactions (noting £255 directors’ current accounts), ensuring these are not masking underlying cash flow issues.
• Timely filing of accounts and confirmation statements to avoid regulatory issues.
• Any changes in business scale or employee engagement that could impact operational risk.