NO CEILINGS LIMITED

Executive Summary

NO CEILINGS LIMITED presents a stable financial position with a solid equity base supported by investment property assets. While the company maintains positive net current assets, its very low cash balance indicates tight liquidity, warranting close monitoring of cash flows and debtor collections. Credit approval is recommended with conditions focusing on liquidity management and ongoing asset valuation oversight.

NO CEILINGS LIMITED - Analysis Report

Company Number: 13119899

Analysis Date: 2025-07-20 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NO CEILINGS LIMITED is an active UK private limited company operating in the letting and operating of own or leased real estate sector. The company shows a solid net asset base (£260,681) supported mainly by investment property assets. However, there is a slight downward trend in net assets and total assets less current liabilities compared to the prior year, indicating some asset revaluation losses and a modest reduction in liquidity. The company's borrowings remain significant (£176,582 bank loans secured by charges), and current liabilities are close to current assets, though net current assets remain positive (£69,909). The company’s cash on hand is low (£1,043), suggesting constrained short-term liquidity. The presence of interest rate hedging indicates some financial risk mitigation. The directors are experienced and no adverse conduct records are noted. Credit approval can be granted but with monitoring and possibly conditions related to liquidity enhancement or covenant compliance given the modest cash position and decreasing asset values.

2. Financial Strength:
   NO CEILINGS LIMITED has a healthy equity base with shareholders’ funds of £260,681, primarily driven by investment property valued at £383,384 as of the latest valuation. The company’s tangible fixed assets are minimal (£72), consistent with the nature of the business. The balance sheet shows a decline in investment property value from £400,000 to £383,384, which impacts total net assets and equity reserves. The company carries long-term debt of £176,582, down from £200,000, indicating some debt repayment or restructuring. Current liabilities are relatively low (£5,105), but current assets have decreased, mostly due to reduced debtors and cash balances. Overall, the company’s asset quality is stable but with some downward valuation pressure on property assets, which should be monitored.

3. Cash Flow Assessment:
   The company’s current assets of £75,014 include debtors of £73,971 and very limited cash of £1,043, indicating that liquidity relies heavily on receivables collection. The reduction in cash from £10,575 to £1,043 year-over-year raises concerns about the company’s immediate ability to meet short-term obligations or service debt from cash reserves. Net current assets remain positive (£69,909), but working capital is tight. Interest rate swaps and derivatives are in place to hedge financial risks, which is a prudent risk management practice. The company’s cash flow depends on rental income (turnover) and debtor collections, so any delays here could stress liquidity. Monitoring debtor ageing and cash conversion is essential.

4. Monitoring Points:

• Liquidity trends, especially cash balances and debtor collections
• Investment property valuation changes and their impact on net asset value
• Debt servicing ability, including compliance with loan covenants on secured borrowings
• Profitability metrics as future accounts become available (no P&L included in latest filing)
• Effectiveness of interest rate hedges and any changes in interest expense
• Any changes in directors or ownership that could impact governance or strategy