NME INVESTMENTS LIMITED

Executive Summary

NME Investments Limited is a newly formed real estate investment entity with strong fixed assets but currently negative working capital, indicating short-term liquidity risk. The company’s equity base provides financial strength, though limited operational history necessitates close monitoring of cash flow and rental income stability. Credit can be extended with caution, emphasizing oversight on liquidity and operational cash generation.

NME INVESTMENTS LIMITED - Analysis Report

Company Number: 15557014

Analysis Date: 2025-07-29 13:05 UTC

1. Credit Opinion: APPROVE with caution. NME Investments Limited is a newly incorporated private limited company engaged in real estate letting and operations, with a micro-entity filing status. The company shows a solid asset base in fixed assets (£1.34m) reflecting property holdings, which supports its operational focus. However, the net current liabilities position of £74k indicates short-term liquidity pressure. Since this is the first financial period (from March 2024 to March 2025), there is limited historical financial performance and cash flow data to fully assess repayment capacity. Directors are experienced and hold significant shareholdings, which suggests aligned management interests. Given the nature of the business and asset backing, credit can be extended but closely monitored for liquidity and operational cash flow generation.

2. Financial Strength: The balance sheet shows fixed assets of £1.34m, consistent with real estate investment activities. Current assets amount to £660k, while current liabilities are £734k, resulting in negative net current assets of £74k. Despite this working capital deficit, shareholders' funds are strong at £1.26m, indicating good equity backing relative to liabilities. The company’s asset-heavy structure and equity base provide a cushion against financial stress, but the liquidity gap should be noted. No employees are currently recorded, implying low operating overheads but also limited operational scale at this stage.

3. Cash Flow Assessment: The negative net current assets position highlights a potential liquidity risk in meeting short-term obligations. Cash flow from operations is not disclosed, but the absence of employees and relatively high current liabilities suggests reliance on capital or external funding to cover working capital requirements. The real estate nature of the business typically implies rental income as the primary cash inflow, but confirmation of rental contracts or income streams is necessary to assess sustainable cash flow generation. Monitoring debtor collection and creditor payment terms will be critical.

4. Monitoring Points:

• Liquidity trends: Monitor quarterly cash flow and working capital levels to ensure short-term obligations are met.
• Rental income stability: Assess the consistency and timeliness of rental receipts supporting cash flow.
• Asset valuation: Watch for changes in the real estate market affecting fixed asset values and company net worth.
• Debt structure: Review any new borrowing or creditor arrangements that could impact financial stability.
• Directors’ involvement and any changes in ownership or control which may affect governance or credit risk.