PROPELLER PARTNERS LIMITED

Executive Summary

Propeller Partners Limited has experienced a sharp decline in financial health, with net liabilities and negative working capital raising serious concerns about its ability to meet obligations. The company’s very small scale and equity erosion make it unsuitable for credit extension currently. Close monitoring of liquidity and capital structure is critical before reconsidering any credit facility.

PROPELLER PARTNERS LIMITED - Analysis Report

Company Number: 14415728

Analysis Date: 2025-07-29 16:17 UTC

1. Credit Opinion: DECLINE
   Propeller Partners Limited demonstrates a significant deterioration in financial position over the latest reported year. The company moved from a positive net asset position of £7,477 in 2023 to a net liability position of £10,074 in 2024, indicating erosion of equity and financial instability. Current liabilities nearly doubled while current assets declined substantially, resulting in a negative working capital of £11,494. This raises concerns about the company’s ability to meet short-term obligations and service any debt. Given its micro-entity status and minimal asset base, the company lacks sufficient financial resilience and track record to support credit extension at this time.

2. Financial Strength:
   The balance sheet shows fixed assets are negligible (£1,420) and current assets have fallen from £18,417 to £10,745. Meanwhile, current liabilities increased from £12,091 to £22,239, causing net current liabilities of £11,494. The company’s equity is negative, reflecting accumulated losses or capital withdrawals. The micro-entity scale and concentration of control in a single director/owner limits operational depth and financial robustness. There is no evidence of significant tangible or intangible asset backing to mitigate creditor risk.

3. Cash Flow Assessment:
   The negative net current assets indicate liquidity stress. The company’s ability to generate sufficient cash inflows to cover short-term liabilities is impaired. Without positive working capital or external financing, liquidity risk is elevated. The absence of published profit and loss data limits detailed cash flow analysis, but the balance sheet changes imply cash outflows or loss-making operations in the last year. The single employee setup suggests a very small operation with limited cash generation capacity.

4. Monitoring Points:

• Monitor quarterly management accounts for cash flow improvements and reduction in current liabilities.
• Watch for any capital injections or shareholder loans to restore equity and working capital.
• Track any changes in director or ownership structure that might impact governance or financial support.
• Observe payment behavior and supplier terms to anticipate any liquidity tightening.
• Review updated financial statements for signs of operational turnaround or continued deterioration.