REED & CO PROPERTIES LIMITED

Executive Summary

Reed & Co Properties Limited is a micro-entity with weak financial health, exhibiting negative net assets and no liquid current assets to cover liabilities. The company’s limited operational scale and lack of cash flow capacity indicate an inability to service debt currently. Credit facilities are not recommended until there is clear evidence of financial stabilization and improved liquidity.

REED & CO PROPERTIES LIMITED - Analysis Report

Company Number: 14007602

Analysis Date: 2025-07-29 20:32 UTC

1. Credit Opinion: DECLINE

Reed & Co Properties Limited shows persistent negative net current assets and shareholders' funds over its reporting period, indicating ongoing net liabilities of approximately £1,399 as of 31 March 2024. The absence of current assets and the continuation of liabilities suggest insufficient liquidity to cover short-term obligations. Additionally, the company has no employees and limited financial activity, reflecting minimal operational scale and revenue generation. Given these factors, the company currently lacks the financial strength and cash flow capacity to service debt or meet commercial credit terms reliably.

2. Financial Strength:

The company is classified as a micro-entity with very limited asset base. Total assets less current liabilities stood at negative £1,399 at the latest year-end, deteriorating from negative £699 the prior year. The balance sheet reveals no fixed assets or investments, and current liabilities slightly exceed current assets. Shareholders' funds are negative, highlighting accumulated losses or insufficient capital injection. This weak equity position undermines the financial buffer needed to absorb losses or economic shocks.

3. Cash Flow Assessment:

Current assets have dropped to zero as of 2024, while current liabilities remain around £1,399, indicating an ongoing working capital deficit. This suggests the company may be unable to meet immediate debt or supplier payments from liquid resources. The absence of employees and no reported profit or cash inflows raise concerns about operational cash generation. Without evidence of external funding or improved cash management, liquidity risk remains high.

4. Monitoring Points:

• Watch for improvements in net current assets and shareholders’ funds in future filings.
• Monitor any capital injections or external financing that may strengthen liquidity.
• Observe operational activity or revenue generation to assess cash flow improvements.
• Keep track of director changes or new appointments that could impact governance.
• Review any overdue filings or legal notices that might indicate deterioration.