ROWAROUND PROPERTIES LTD

Executive Summary

Rowaround Properties Ltd shows typical start-up characteristics in the property sector with high leverage and minimal equity. The company’s ability to service long-term debt depends on asset values and future cash flows, which are currently tight. Conditional approval is recommended with close financial monitoring and risk mitigation measures in place.

ROWAROUND PROPERTIES LTD - Analysis Report

Company Number: 14122030

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rowaround Properties Ltd is a micro private limited company engaged in property development and real estate activities. The company exhibits a very small net asset base (£21,308) relative to its sizeable fixed assets (£1.93 million) and long-term liabilities (£1.92 million). While the company is operational and not in liquidation, the balance sheet shows a high gearing level with long-term creditors nearly matching the fixed assets, indicating reliance on external funding. The current assets and net current assets are minimal but positive, suggesting limited short-term liquidity. Given the early stage of the company (incorporated 2022) and limited trading history, credit exposure should be cautiously managed with conditions such as regular financial monitoring, confirmation of income stability, and possibly personal guarantees from the principal shareholder/director, Mr. Trevor Paul Elwood, who holds full control.

2. Financial Strength:
   The balance sheet shows £1.93 million in fixed assets (likely property related) offset by almost equal long-term liabilities (£1.92 million). This results in minimal net equity (£21,308). Current assets are very low (£22,130) but exceed current liabilities (£5,111), leaving a small positive working capital buffer. The company has no retained earnings or P&L reserves yet, consistent with its recent incorporation. High leverage increases financial risk, but the assets appear to be property-related, which may provide collateral value. The financial structure is typical for a start-up property company using debt to acquire assets, but the thin equity base means financial resilience is low.

3. Cash Flow Assessment:
   Current assets are limited and mainly cash/debtors at £22,130, with current liabilities of £5,111, suggesting adequate short-term liquidity to meet immediate obligations. However, the working capital surplus is minimal, so any cash flow disruption could strain operations. The director’s loan of £16,562 is interest-free and repayable on demand, representing a potential source of informal liquidity but also indicating reliance on director support. Overall, cash flow appears tight and will need careful management, particularly given the long-term debt service requirements.

4. Monitoring Points:

• Monitor timely servicing of the significant long-term debt (£1.92 million) and any changes in creditor terms.
• Track property asset valuations and potential impairments as market conditions evolve.
• Review regular updates on cash flow forecasts and liquidity position.
• Watch for changes in director loans and any additional external financing.
• Monitor filings and confirm no overdue accounts or compliance issues arise.