NORTON & NORTON PROPERTY MANAGEMENT LIMITED

Executive Summary

Norton & Norton Property Management Limited is solvent with a solid asset base in investment property but faces liquidity challenges due to significant short-term liabilities owed to directors. The company depends on director funding to cover working capital needs, resulting in a net current liability position and minimal cash reserves. Conditional credit approval is recommended, contingent on ongoing director support and close monitoring of liquidity and related-party financing.

NORTON & NORTON PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 12749985

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Norton & Norton Property Management Limited shows ongoing operations with a relatively stable asset base predominantly in investment property. However, the company exhibits a significant and persistent net current liability position, primarily due to substantial amounts owed to directors (£605k in 2024). This related-party creditor balance raises concerns about liquidity and reliance on director funding rather than external financing or operational cash flow. While the company is solvent on a net asset basis (£79.9k in 2024), the high short-term liabilities relative to current assets and cash (£0.6k cash in 2024) suggest potential challenges in meeting short-term obligations without continued director support. Credit approval should be conditional on clear evidence of continued director funding or improved liquidity measures and regular monitoring of cash flow.

2. Financial Strength: The balance sheet shows fixed assets of £714k, mainly investment property, which has slightly decreased in value (£711.8k in 2024 vs. £721.8k in 2023). Shareholders’ funds decreased from £91.4k to £79.9k, reflecting a small reduction in reserves. The company’s net assets remain positive, indicating solvency on a longer-term basis. However, current liabilities exceed current assets by over £600k consistently, driven by amounts owed to directors, suggesting the company is structurally dependent on related-party financing to cover short-term liabilities.

3. Cash Flow Assessment: Cash at bank dropped markedly from £22.3k in 2023 to only £599 in 2024, signaling tightened liquidity. Current assets (mainly prepayments and debtors) are minimal compared to current liabilities. The net current liability position indicates working capital deficiency, and the company relies heavily on director loans to finance operations. Without director funding, the company’s ability to meet short-term commitments may be compromised. The absence of an audit and limited disclosure on income statement and cash flow limits full cash flow assessment, but available data points to liquidity risk.

4. Monitoring Points:

• Continual monitoring of director loan balances and any changes in terms or repayment plans.
• Liquidity metrics, especially cash balances and net current asset position.
• Investment property valuations for material changes affecting solvency.
• Profitability and operational cash flow trends once income statements are available.
• Timely filing of accounts and confirmation statements to ensure compliance.