Company Number: 13586038

Analysis Date: 2025-07-29 13:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Propcert Ltd shows positive growth in current assets and cash balances over the last two years, indicating improving liquidity. However, the company carries high current liabilities relative to its assets, resulting in very thin net current assets (£7.5k at 31/03/2024). The increase in creditors, especially taxation and other creditors, warrants caution. Approval is recommended with conditions requiring regular monitoring of working capital and timely settlements of liabilities to avoid cash flow stress.

2. Financial Strength:
   The company is in the micro category with modest equity (£7.5k) and no fixed assets disclosed. Shareholders’ funds have increased from £2.8k to £7.5k year-on-year, suggesting the company is retaining earnings or injecting capital. The rise in current liabilities from £224k to £594k is significant and primarily due to tax and other creditors. The balance sheet is stable but stretched, reflecting a young company scaling operations with limited buffer for downturns.

3. Cash Flow Assessment:
   Cash at bank has doubled to £449k, which is a strong indicator of liquidity. Debtors have increased to £152k, which may present some credit risk depending on collection practices. The narrow net current assets position means cash inflows must be carefully managed against liabilities due within one year. The company’s ability to convert debtors to cash expediently will be key to sustaining operations and meeting short-term obligations.

4. Monitoring Points:

• Monitor the ageing and collectability of debtors to prevent cash flow bottlenecks.
• Track the buildup of taxation and other creditors to ensure liabilities do not accumulate unsustainably.
• Review turnover and profitability trends once available (income statement not filed) to assess ongoing business viability.
• Keep watch on director-related transactions and any changes in ownership or control that could affect credit risk.