ROUTER PROPERTY MANAGEMENT LIMITED

Executive Summary

Router Property Management Limited is a newly established micro-entity with a weak financial base, negative net assets, and substantial liabilities exceeding its asset base. Its liquidity position is poor, with working capital deficit posing immediate repayment risks. Given the current financial indicators and lack of an operational track record, credit facilities are not recommended without significant improvement or external guarantees.

ROUTER PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 15219125

Analysis Date: 2025-07-20 16:25 UTC

1. Credit Opinion: DECLINE
   Router Property Management Limited shows significant financial stress in its first reported period. The company has net liabilities of £13,114 and a highly leveraged position with long-term creditors (£875,186) exceeding total assets less current liabilities (£862,072). Negative shareholders’ funds indicate insolvency on a balance sheet basis. The large current liabilities relative to current assets (£15,615) and negative net current assets (£-360,681) raise serious doubts about the company’s ability to meet short-term obligations. Additionally, as a newly incorporated entity (October 2023) with limited trading history and a single director controlling 100% shares, the absence of audited financials and limited financial track record increases risk. Without additional collateral, support, or clear repayment plans, extending credit is not advisable.

2. Financial Strength:
   The balance sheet reveals weak financial health. Fixed assets of £1.22m are outweighed by combined current and long-term liabilities totaling approximately £1.25m (£875k + £376k). Negative net assets and shareholders’ deficit reflect accumulated losses or capital shortfall. The working capital deficit (-£360k) signals liquidity strain. The company’s micro-entity reporting status limits disclosure, and the absence of profit & loss data prevents assessment of profitability or cash generation. Overall, the financial position is fragile with solvency concerns.

3. Cash Flow Assessment:
   Current assets (£15.6k), likely predominantly cash or receivables, are insufficient to cover current liabilities (£376k). This creates immediate liquidity issues, impairing ability to service short-term debts or operational expenses. Negative working capital suggests reliance on external funding or refinancing to continue operating. The company’s ability to generate cash flow from operations is unclear due to missing profit and loss data. The high creditor amounts due after one year indicate significant debt obligations that will require sustained positive cash flows to manage.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios
• Reduction of long-term debt or restructuring of creditor terms
• Filing of next accounts and confirmation statement on time
• Profitability and cash flow trends when profit and loss data become available
• Any changes in director or ownership structure impacting governance or financial support
• Payment history on any trade or financial obligations