Company Number: 12401786

Analysis Date: 2025-07-20 18:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oliver Property Limited is a small private limited company primarily engaged in owning and letting real estate. The company shows a significant increase in investment property value reflecting asset growth, but its liquidity position is weak with net current liabilities of £151k and very low cash reserves (£61). The company’s debt has increased substantially from £68k to £223k, mostly secured by bank loans repayable after five years. Given the thin equity base (£1,780) and working capital deficit, the company can service long-term debt if rental income is stable and sufficient. However, the current liquidity and working capital position pose short-term risks. Approval is recommended on the condition that the company provides evidence of steady rental income or other cash inflows to cover near-term obligations and services debt.

2. Financial Strength:

• Fixed assets (investment property) increased to £380k from £120k, showing capital investment and asset appreciation.
• Net assets have declined sharply from £11,240 to £1,780, primarily due to increased long-term liabilities.
• Share capital is minimal (£100), indicating limited shareholder equity buffer.
• The company relies heavily on bank loans (£223k), which are secured but represent a high gearing level relative to equity.
• No audit has been performed, so financial information is unaudited and should be treated with caution.

3. Cash Flow Assessment:

• Cash on hand is minimal (£61), indicating limited immediate liquidity.
• Debtors are £952, but this is negligible relative to current liabilities (£223k).
• The company has a net current liability position of £151k, reflecting a working capital deficit which could strain short-term operational expenses.
• Long-term bank loans due after five years reduce immediate repayment pressure but increase financial risk if rental income falters.
• Absence of profit and loss details limits insight into operational cash flow generation.

4. Monitoring Points:

• Track rental income streams and arrears to confirm stable cash inflows supporting debt servicing.
• Monitor working capital position and ability to meet short-term liabilities without strain.
• Review future refinancing risks or loan covenant compliance, especially given increased borrowings.
• Watch for any changes in property valuation affecting asset backing.
• Monitor director conduct and any changes in ownership or control that might impact governance.