NEW FUTURE PROPERTY SOLUTIONS LIMITED

Executive Summary

New Future Property Solutions Limited is a start-up real estate letting company with significant leverage and negative equity in its first year. The company’s ability to service debt depends on continued director support and stable rental income. Credit approval is conditional with close monitoring of cash flow, leverage, and property valuations recommended to mitigate risk.

NEW FUTURE PROPERTY SOLUTIONS LIMITED - Analysis Report

Company Number: SC756466

Analysis Date: 2025-07-29 17:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   New Future Property Solutions Limited is a newly incorporated private limited company engaged in real estate letting. The company shows significant negative net assets (£-24,611) and net current liabilities (£-34,435) in its first year of operation. The presence of secured bank loans of £87,328 against investment property indicates reliance on debt financing with limited equity buffer. While the directors state that the business will continue to be supported by them, the financial position is weak, with negative shareholders’ funds. Approval is conditional on continued director support, monitoring of cash flows, and covenant compliance on secured borrowings. Further scrutiny is advised before increasing credit exposure.

2. Financial Strength
   The balance sheet reflects £97k in fixed assets primarily investment property (£96,686), which serves as collateral for the secured debts. Current assets are low (£20,099), mostly cash, with minimal debtors (£125). Current liabilities are substantial (£54,534), mainly creditors due within one year, and long-term liabilities of £87,328 bank loans secured on property. Negative net current assets and negative shareholders’ funds suggest limited financial resilience and potential risk if property values decline or rental income is interrupted. The capital structure is highly leveraged with minimal equity.

3. Cash Flow Assessment
   Cash at bank is £19,974, which provides some immediate liquidity, but current liabilities exceed current assets by over £34k, indicating working capital stress. The company’s ability to meet short-term obligations relies heavily on cash flow generation from property rental and director support. No detailed profit and loss data is available, but the negative reserves imply losses or initial start-up expenses. The absence of significant debtors suggests limited receivables risk, but cash flow volatility due to tenancy changes could impact repayment capacity.

4. Monitoring Points

• Regular review of cash flow forecasts and cash balances to ensure liquidity
• Monitoring rental income stability and occupancy rates of investment property
• Covenants and repayment schedule compliance on secured bank loans
• Any additional director loans or equity injections to support the business
• Periodic revaluation of investment property to assess collateral adequacy
• Filing of next accounts and confirmation statements on time to avoid compliance risk