NORTH WEST HOMES & PROPERTY LTD

Executive Summary

North West Homes & Property Ltd is in a weak financial position with persistent negative equity and insufficient liquidity to meet short-term obligations. The company’s deteriorating net asset position and minimal cash balances indicate a high credit risk. Without significant financial improvement or capital support, credit extension is not recommended at this stage.

NORTH WEST HOMES & PROPERTY LTD - Analysis Report

Company Number: 12409714

Analysis Date: 2025-07-20 18:47 UTC

1. Credit Opinion: DECLINE
   North West Homes & Property Ltd exhibits significant financial distress. The company has persistent net liabilities, with shareholders' funds deteriorating from -£3,206 in 2020 to -£52,250 in 2024. Current liabilities substantially exceed current assets, showing a severely negative working capital position. The company relies on bank loans of £79,563, which are not reducing, indicating potential repayment difficulties. Absence of profits or positive equity and limited cash resources (£1,343) raise high credit risk concerns. The business is unlikely to service additional debt or meet commercial obligations reliably without substantial financial restructuring.

2. Financial Strength:
   The balance sheet shows an investment property valued at £109,523 as the only significant fixed asset. However, this is offset by liabilities totaling over £160,000, including current payables of £83,453 and long-term bank loans of £79,563. Net current assets are negative by £82,110, reflecting poor short-term liquidity. Negative net assets and shareholders’ funds indicate insolvency on a balance sheet basis. The company’s financial trajectory is worsening, with net liabilities increasing year-over-year, signaling declining financial health and inadequate capital base.

3. Cash Flow Assessment:
   Cash balances are minimal and declining (£1,343 in 2024 vs £2,048 in 2023), insufficient to cover short-term liabilities. The large negative working capital and ongoing bank loan obligations suggest tight liquidity and limited operational cash flow. The absence of employees and limited operational data hint at a non-revenue-generating status or minimal trading activity. Without clear positive cash flow or equity injection, the company faces challenges in meeting immediate payment obligations, making it a high-risk credit proposition.

4. Monitoring Points:

• Watch for improvements in working capital and cash position, especially cash flow from operations.
• Monitor any changes in bank loan balances and terms to assess repayment progress or restructuring.
• Review future filed accounts for profitability or equity improvements.
• Track director actions or changes in ownership that may signal turnaround efforts.
• Observe any related party transactions or asset disposals that could affect liquidity.