OBAS PROPERTIES AND INVESTMENTS LIMITED

Executive Summary

OBAS PROPERTIES AND INVESTMENTS LIMITED has a stable property asset base but is challenged by negative working capital and limited turnover. While recent profitability is a positive sign, short-term liquidity risks warrant conditional credit approval with close cash flow monitoring. The company’s creditworthiness hinges on effective management of liabilities and maintaining asset value.

OBAS PROPERTIES AND INVESTMENTS LIMITED - Analysis Report

Company Number: 12420303

Analysis Date: 2025-07-20 18:36 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. OBAS PROPERTIES AND INVESTMENTS LIMITED demonstrates modest growth in turnover and has moved from a loss position in 2023 to a small profit in 2024. The company holds significant fixed assets, likely real estate, which are the core of its business. However, the large current liabilities relative to current assets create a negative working capital position, indicating potential short-term liquidity risks. The company's ability to service debt is constrained by low turnover and net current liabilities. Approval for credit facilities should be conditional on obtaining additional security or guarantees and close monitoring of cash flows.

2. Financial Strength:
   The balance sheet shows substantial fixed assets (£442,691) consistent over recent years, reflecting stability in asset base, presumably property holdings. Net assets have improved from £801 in 2023 to £13,174 in 2024, showing retained earnings from recent profitability. However, net current assets remain negative (£-97,500 in 2024), driven by current liabilities (£332,018) exceeding current assets (£29,000). The company also carries significant long-term liabilities nearly equal to fixed assets, which suggests leveraged financing of property investments. Overall, the financial strength is weak to moderate: strong asset backing but strained liquidity and modest equity buffer.

3. Cash Flow Assessment:
   The company has a negative working capital position indicating potential cash flow constraints in meeting short-term obligations. Turnover remains very low (£22,694 in 2024) relative to liabilities, suggesting limited operating cash inflow. The increase in current assets from £16,627 to £29,000 is positive but insufficient to cover current liabilities, which have remained stable. No employees are reported, implying low operating overhead but also limited revenue generation capacity. Cash flow management will be critical, and the company may rely on refinancing or capital injections to meet liabilities.

4. Monitoring Points:

• Liquidity ratios and changes in current liabilities to detect worsening working capital.
• Profitability trends given current low turnover and recent profitability turnaround.
• Asset valuations and any impairments on fixed property assets.
• Director actions regarding debt servicing and capital structure adjustments.
• Timely filings of accounts and confirmation statements to ensure compliance and transparency.