Company Number: 13137287

Analysis Date: 2025-07-20 13:41 UTC

1. Credit Opinion: DECLINE
   NMK3 Properties Limited exhibits significant liquidity and working capital issues, with current liabilities vastly exceeding current assets, resulting in negative net current assets of approximately £258k in the latest year. Although the company holds a fixed asset (property) valued at £265,000, this asset is illiquid and unlikely to be converted quickly to meet short-term obligations. The cash balance is very low (£1,883) and declining from prior years, indicating insufficient liquid resources to cover debts. The company’s shareholders’ funds have only recently turned positive (£6,611) after years of negative equity, but this is marginal and does not compensate for the large short-term liabilities. There is no indication of profitability or positive cash flows from operations given lack of income statement data and repeated overdrafts on working capital. The directors are individuals with no adverse records, but the financial position suggests poor financial stewardship or undercapitalization. Without a clear plan to reduce liabilities or improve liquidity, the company’s ability to service debt is doubtful.

2. Financial Strength:
   The balance sheet shows a single tangible fixed asset of £265,000 (land and buildings) with no depreciation change year-over-year, indicating stable asset value. However, current liabilities are very high (£260,272), mainly consisting of other creditors (£258,522), overshadowing current assets (£1,883 cash). This leads to net current liabilities of £-258,389, a critical liquidity concern. Shareholders’ funds are positive but minimal (£6,611), reflecting very limited equity buffer. The company has no significant share capital (£2), indicating undercapitalization. The financial trajectory shows some improvement from negative equity in prior years but remains precarious. The lack of audit and incomplete income data limits full assessment but the available data highlights substantial solvency risk from a credit perspective.

3. Cash Flow Assessment:
   The company’s cash position has dropped sharply from £17,694 two years ago to £1,883 currently, indicating cash burn or inability to generate sufficient operating cash flow. Negative net current assets show working capital deficits that suggest ongoing reliance on creditor funding or external support to meet short-term obligations. The absence of detailed income or cash flow statements limits precise analysis but the shrinking cash pile combined with high current liabilities signals poor liquidity management. The company’s ability to cover immediate debts with available liquid resources is inadequate, raising concerns about short-term payment capability.

4. Monitoring Points:

• Watch cash and cash equivalents closely for further deterioration.
• Track changes in current liabilities, especially other creditors, for signs of increasing short-term debt.
• Monitor any improvements in shareholders’ funds or capital injections to strengthen the equity base.
• Review future filings for income statement and cash flow data to assess operational profitability and liquidity improvement.
• Observe any timely repayment of current liabilities or extension of creditor terms to mitigate liquidity risk.
• Directors’ actions on financial restructuring or asset sales should be noted.