NUMBER TWENTY TWO LTD

Executive Summary

Number Twenty Two Ltd has a substantial investment property asset but currently reports negative net assets and a working capital shortfall, reflecting its early development stage. Credit approval is conditional, requiring evidence of future cash flow generation or capital support to meet debt and short-term liabilities. Continuous monitoring of liquidity and debt servicing capacity is essential for ongoing credit risk management.

NUMBER TWENTY TWO LTD - Analysis Report

Company Number: 14961914

Analysis Date: 2025-07-29 13:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Number Twenty Two Ltd is a newly incorporated private limited company operating in the real estate sector (SIC 68209). The company holds a significant investment property asset valued at £433,151 but reports net liabilities of £10,438 and net current liabilities of £199,669 as of 30 June 2024. Current liabilities include a sizeable bank loan of £243,920 due after one year and director's current accounts of £212,730 due within one year. The company has limited cash reserves (£13,535) and no employees, indicating minimal operating activity or revenue generation to date. Given the early stage of the business and its negative equity position, credit approval should be conditional on further assurance of cash flow generation or capital injection plans to service debt and working capital needs.

2. Financial Strength:
   The balance sheet shows total fixed assets (investment property) of £433,151, which is a strong asset base for a young company. However, the company’s liabilities exceed its assets, resulting in negative shareholders' funds (£10,439). The large bank loan and director's current accounts represent significant financial obligations. Negative net current assets (£199,669) indicate working capital deficiency, which is a concern for short-term financial stability. The absence of retained earnings or profit reserves highlights the company is still in its investment/startup phase without operational profits.

3. Cash Flow Assessment:
   With cash on hand of only £13,535 against current liabilities of £213,204, liquidity is constrained. There is a high reliance on director funding (£212,730) and bank loans (£243,920) to finance operations and asset acquisition. No income or revenue data is provided, and with zero employees, operational cash inflows appear minimal or non-existent at this stage. The company’s ability to cover short-term obligations from operating cash flows is currently weak and dependent on either asset sales, refinancing, or additional capital injections.

4. Monitoring Points:

• Track the company’s ability to generate rental income or other cash inflows from the investment property.
• Monitor repayment or restructuring plans for bank loans and director’s current accounts.
• Review updates on working capital improvements and changes in liquidity position.
• Watch for any capital raises or equity injections to improve net asset position.
• Assess the director’s ongoing financial support and management plans to achieve profitability.