NIGEL THOMAS PROPERTY LTD

Executive Summary

Nigel Thomas Property Ltd exhibits a weak financial position characterized by negative net assets and significant short-term liabilities exceeding current assets. The company’s liquidity is strained, and ongoing losses erode shareholder funds, undermining its ability to service debt. Credit approval is not recommended without substantial improvement in financial strength and cash flow.

NIGEL THOMAS PROPERTY LTD - Analysis Report

Company Number: 13791480

Analysis Date: 2025-07-20 17:06 UTC

Credit Opinion:
DECLINE. Nigel Thomas Property Ltd shows persistent negative net assets and net current liabilities with a worsening financial position over the last two years. The company’s liabilities, particularly short-term obligations, significantly exceed its current assets, indicating a strained liquidity position. The high level of finance lease obligations and other creditors compared to cash and debtors raises concerns about its ability to meet short-term debt commitments without additional financing or equity injection. The company’s negative equity and ongoing losses undermine its creditworthiness and resilience.

Financial Strength:
The company’s balance sheet reveals fixed assets of approximately £549k, primarily in land and property, offset by current liabilities of over £657k in 2023 and additional finance lease obligations totaling £27k. Net current liabilities stand at nearly £595k, and overall net liabilities increased from about £52.6k in 2022 to £65.6k in 2023. Shareholders’ funds remain negative, highlighting accumulated losses and insufficient capital to support operations. This weak equity base and negative net assets position indicate poor financial strength and limited buffer against shocks.

Cash Flow Assessment:
Cash holdings dropped from £78k in 2022 to £58.5k in 2023, while current liabilities rose, worsening liquidity pressures. The company has minimal trade debtors (£4k) and relies heavily on creditor financing (£647k+). The negative working capital suggests a mismatch between short-term assets and liabilities, raising concerns about the company’s ability to service debts and operating expenses from internal cash flows. The presence of finance lease liabilities adds fixed obligations that may further constrain cash flow flexibility.

Monitoring Points:

• Monitor quarterly cash flow statements and liquidity ratios closely for signs of improvement or deterioration.
• Watch for any capital injections or refinancing efforts to alleviate negative working capital and equity.
• Track creditor payment terms and any overdue liabilities that could indicate stress.
• Evaluate any changes in property valuations or asset disposals that might improve the balance sheet.
• Review management actions to improve profitability and reduce losses.