O'CONNOR PROPERTIES HOLDINGS LIMITED

Executive Summary

O'Connor Properties Holdings Limited shows stable equity and asset backing but suffers from persistent working capital deficits and low liquidity, relying heavily on parent company support. While the business is currently viable, credit should be extended on a conditional basis with close monitoring of cash flow, profitability, and continued intra-group financial support. The company’s overall credit risk is moderate given the group backing but vulnerable if parent support diminishes.

O'CONNOR PROPERTIES HOLDINGS LIMITED - Analysis Report

Company Number: 12598765

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. O'Connor Properties Holdings Limited is a small private limited company with a stable equity base of £100,000 and consistent net asset position around £92k-£95k. However, the company shows persistent net current liabilities (working capital deficits: -£7,663 in 2024) and minimal cash balances (£337), indicating potential short-term liquidity pressure. The company has reported a small net loss of £2,630 in the latest year but benefits from strong financial support from its ultimate parent company, confirmed by a letter of support covering at least 12 months. Given these factors, the company is currently viable but requires ongoing monitoring especially on liquidity and reliance on group support. Credit facilities should be extended conditionally, subject to continued parent support and regular review of working capital and cash flow.

2. Financial Strength: The balance sheet is structurally sound with fixed asset investments valued at £100,000 representing 100% shareholding in a subsidiary (O'Connor Properties Limited), which itself reports substantial net assets (£35.7M) and positive profits (£315k in the latest year). Shareholders' funds remain stable at £92,337 after accounting for accumulated losses. The company does not have external debt outside amounts owed to group undertakings (£8,000 current liabilities). The persistent working capital deficit reflects current liabilities owed to related parties rather than external creditors, mitigating external credit risk. Overall, the financial strength is moderate but reliant on the group.

3. Cash Flow Assessment: The company holds very low cash reserves (£337 at year-end) and has negative net current assets (-£7,663), indicating limited liquidity to cover short-term liabilities without additional funding. The absence of employees suggests minimal operational cash outflows. The confirmation of a letter of financial support from the parent company is critical, as it underpins the company’s ability to meet obligations as they fall due. Internal cash generation appears minimal or negative due to reported losses, so liquidity is dependent on intra-group funding rather than operating cash flow.

4. Monitoring Points:

• Liquidity trends: Regular review of cash balances and working capital to detect worsening short-term funding gaps.
• Parent company support: Verification that the letter of support remains valid and that funding continues without interruption.
• Profitability trajectory: Watch for improvement or further deterioration in net results to assess operational viability.
• Group financial health: Since the company is dependent on its parent, monitoring the ultimate parent’s financial stability is essential.
• Related party balances: Monitor the amounts owed to group undertakings to ensure these do not become overdue or uncollectible.