PARADIZE PROPERTIES LIMITED

Executive Summary

Paradize Properties Limited is a newly incorporated property management and real estate trading company with a weak financial position after its first year. The balance sheet shows negative equity and significant working capital deficits, indicating limited ability to service debt or meet short-term liabilities. Credit approval is not advised at this stage without stronger financial backing or security.

PARADIZE PROPERTIES LIMITED - Analysis Report

Company Number: 15218233

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: DECLINE
   Paradize Properties Limited shows a weak financial position after its first year of operation with net current liabilities of £93,455 and a marginally negative net asset position (£885 deficit). The company has significant long-term liabilities (£236,250) exceeding its fixed assets (£329,600) only slightly, leaving little buffer. There is no evidence of revenue generation or cash inflows as current assets are minimal (£570), and no trading profit or cash flow data was provided. Given the early stage and negative equity, credit risk is high with poor capacity to service debt currently. Approval is not recommended without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet reflects a micro-entity under the FRS 105 regime, with limited operating history. Fixed assets represent the main asset base (£329,600), consistent with property-related activities. However, the company’s liabilities include £236,250 due beyond one year and £94,025 due within one year, resulting in net current liabilities and a negative shareholders' funds position. This indicates thin capitalization and an overleveraged structure for a start-up property management and dealing business.

3. Cash Flow Assessment:
   Current assets stand at just £570, suggesting very limited liquidity to cover short-term obligations of £94,025. The working capital deficit (-£93,455) raises concerns about the company’s ability to meet near-term liabilities without additional financing. No employees were reported, implying low operating expenses, yet the absence of cash or receivables indicates that operating cash flow is either non-existent or negative. Without positive cash inflows or capital injection, liquidity risk is significant.

4. Monitoring Points:

• Monitor next filed accounts for evidence of revenue generation and profit margins.
• Track cash balances and working capital improvements, especially current asset growth.
• Review any new capital injections or debt restructuring to improve solvency.
• Watch for director loan accounts or related party transactions that may impact liquidity.
• Evaluate compliance with filing deadlines and any changes in director profiles or control.