PINMER PROPERTY MANAGEMENT LLP

Executive Summary

Pinmer Property Management LLP has a strong asset base in investment property but exhibits weak equity and marginal liquidity. The company’s ability to meet short-term obligations is currently tight, relying heavily on member funds. Conditional credit approval is recommended with stringent monitoring of cash flow and liabilities to mitigate risk.

PINMER PROPERTY MANAGEMENT LLP - Analysis Report

Company Number: OC437490

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Pinmer Property Management LLP is a relatively new entity (incorporated 2021) with modest operational scale (no employees reported). The company holds substantial investment property valued at £1.13 million, which supports asset backing. However, the firm’s negative shareholders’ funds (£27,294 deficit) and marginal net current assets (£129) indicate limited financial cushion. The company's liquidity is thin, with cash of £7,215 barely covering current liabilities of £7,086. The presence of bank loans of £6,000 due within one year and current accounts owed to members totaling £27,423 further suggest reliance on member funding. Given these factors, credit can be extended but subject to close monitoring of cash flow and any additional borrowing. Approval is conditional on maintaining or improving liquidity and controlling short-term liabilities.

2. Financial Strength:
   The balance sheet shows strong fixed assets via investment property at £1.13 million, providing a solid collateral base. However, equity is negative, reflecting accumulated losses or withdrawals exceeding capital contributions. The negative shareholders’ funds point to some financial strain, although the property valuation offsets this to an extent. The working capital has improved from a negative £2,301 in the prior year to a positive £129, indicating a slight but fragile liquidity improvement. The company's financial structure relies heavily on member current accounts rather than external debt or equity, which may limit external creditor confidence.

3. Cash Flow Assessment:
   Cash balances are low but have increased slightly year-on-year (£6,379 to £7,215), which is positive. However, cash just covers current liabilities, leaving little room for unexpected expenses or loan repayments. The company currently has no employees, indicating low operating overheads, but the absence of reported profits or income details limits confidence in future cash generation. The loans due within one year (£6,000 bank loan) and current accounts payable to members (£27,423) are material short-term obligations that must be managed carefully. The company’s liquidity position is tight, and cash flow must be monitored closely to avoid solvency issues.

4. Monitoring Points:

• Cash flow and liquidity ratios, particularly current ratio and quick ratio, to ensure working capital remains positive.
• Changes in investment property valuation, as this underpins balance sheet strength.
• Levels of member current accounts and potential calls for additional funding or withdrawals.
• Timely servicing of bank loans and other creditors.
• Any operational developments that may affect revenue or expenses, given no employees and limited income detail.
• Subsequent financial statements and confirmation statements to detect any deterioration or improvement.