Company Number: 13879055

Analysis Date: 2025-07-20 13:38 UTC

1. Credit Opinion: DECLINE. Possum Properties Limited demonstrates weak financial health with negative net assets and persistent net current liabilities, indicating insufficient short-term liquidity to meet its obligations. The company’s fixed assets (likely property) dominate its balance sheet, yet these are heavily leveraged with significant long-term liabilities exceeding current asset levels. The company is a micro-entity with limited financial history (incorporated in 2022), showing no improvement in net asset position over two years. Given the negative equity, ongoing losses, and poor working capital, the risk of default on credit facilities is high without substantial external support or equity injection.

2. Financial Strength: The balance sheet shows fixed assets of £419,783 consistently over the last two years, likely representing the company’s property holdings. However, current liabilities (£204,888 in 2024) far exceed current assets (£7,706), leading to a negative working capital of approximately £196,645. Long-term liabilities remain high (£223,252), resulting in net liabilities of £714 as of January 2024 (a minor improvement from -£3,878 in 2023 but still negative). Shareholders’ funds are negative, indicating accumulated losses or insufficient capital contributions. This weak equity base and heavy leverage undermine financial stability.

3. Cash Flow Assessment: Current assets are minimal and predominantly cash or equivalents (£7,706), insufficient to cover short-term liabilities. The company’s working capital deficit suggests ongoing liquidity challenges, with the risk that it may struggle to meet creditor demands or day-to-day operational expenses without refinancing or asset sales. There is no indication of positive operational cash flow or profitability, and the absence of profit and loss data limits assessment but the negative equity and lack of retained earnings imply losses. The company’s ability to generate or access cash in the short term is poor.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) to monitor short-term solvency.
• Changes in net assets and equity position to detect improving or worsening financial health.
• Debt servicing capacity, including interest coverage if data becomes available.
• Directors’ plans for capital injection or restructuring to address negative equity.
• Payment history with suppliers and creditors to assess operational resilience.
• Any new filings or amendments indicating changes in company status or financial performance.