Company Number: 12425247

Analysis Date: 2025-07-20 18:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NND Properties Ltd operates in buying and selling of its own real estate with a modest equity base and significant long-term creditor obligations. While the company shows positive net assets and no overdue filings, its current liabilities exceed current assets, resulting in a working capital deficit. The business appears reliant on long-term creditor funding, which raises concerns about liquidity and short-term repayment capacity. Conditional approval is recommended, subject to monitoring liquidity improvement and confirmation of creditor terms and repayment schedules.

2. Financial Strength:
   The company’s net assets improved from £30,005 in 2023 to £43,393 in 2024, indicating some retained earnings accumulation. Investment property valued at £587,252 constitutes the major asset. However, current liabilities stand at £28,211 with a negative net working capital of £-7,514. Longer-term creditors are substantial at over £536,000, which reflects either loans or deferred payments. The equity base is thin relative to total liabilities, limiting the financial buffer against adverse market conditions.

3. Cash Flow Assessment:
   Cash on hand is low at approximately £20,700, covering only a fraction of current liabilities. The negative net current assets indicate potential strain in meeting short-term obligations without additional financing or asset sales. The absence of employees and operational expenses suggests limited cash outflow, but the company’s ability to generate cash internally from operations or asset disposals is not evident. Liquidity risk is a key concern that should be addressed.

4. Monitoring Points:

• Track changes in working capital and monitor whether current liabilities decrease or current assets increase to reduce liquidity risk.
• Review creditor agreements to understand repayment terms and potential refinancing needs.
• Monitor property market conditions affecting investment property valuations and potential impairment risk.
• Watch for any changes in cash balances and assess if operating cash flows improve or if new financing is secured.
• Keep an eye on directors’ conduct and company filings to ensure compliance and governance quality.