QUINN AND SONS PROPERTY LTD

Executive Summary

Quinn And Sons Property Ltd displays a weak financial position highlighted by negative net assets and persistent working capital deficits. Despite a recent improvement in cash balances, the company's ability to service debt and meet short-term liabilities relies heavily on director loans and external financing. Given these factors, extending credit without significant mitigation or capital reinforcement is not advisable at this time.

QUINN AND SONS PROPERTY LTD - Analysis Report

Company Number: 13207409

Analysis Date: 2025-07-29 12:32 UTC

1. Credit Opinion: DECLINE
   Quinn And Sons Property Ltd demonstrates persistent net liabilities and negative shareholders' funds over multiple years, indicating an ongoing capital deficiency. The firm’s net current liabilities position of approximately £54,611 as of the latest accounts, combined with a high level of director loans and bank loans, raises concerns about liquidity and solvency. The company’s inability to generate positive net assets or improve working capital suggests it may struggle to meet short-term obligations or service additional credit facilities without further capital injection or operational improvement.

2. Financial Strength:
   The balance sheet is weak, showing net liabilities of £13,865 as at 28 February 2025, worsening slightly from previous years. Fixed assets remain stable at £132,476, representing investment property held at cost, but the company carries substantial liabilities both current (£96,987) and long-term (£91,730). The negative net current assets position indicates inadequate working capital to support ongoing operations. Shareholders’ funds are negative, reflecting accumulated losses and reliance on director loans (£96,567 current liabilities), which may not be sustainable.

3. Cash Flow Assessment:
   Cash increased significantly to £42,376 in the latest year from £4,755 previously, suggesting some improvement in liquidity. However, this cash balance is still insufficient relative to current liabilities almost double that amount, and net current liabilities exceed £54k. The company’s working capital position is under pressure, and the high level of director loans classified as current liabilities may indicate reliance on intra-group financing rather than operational cash generation. Without stronger cash flow from operations or refinancing, liquidity risk remains elevated.

4. Monitoring Points:

• Net current assets/liabilities trend: Watch whether working capital deficits are addressed.
• Director loan accounts: Monitor for any restructuring or repayment plans, as these loans are a significant component of short-term liabilities.
• Cash flow from operations: Assess future cash generation to reduce liquidity risk.
• Profitability and reserves: Look for movement toward positive retained earnings and net assets.
• Debt servicing capacity: Evaluate interest coverage and repayment terms on bank loans.