RUTLAND GATE PROPERTY LIMITED

Executive Summary

Rutland Gate Property Limited is a startup real estate investment entity with a strong asset base but weakened liquidity due to a substantial short-term bridging loan. The company’s ability to service debt hinges on refinancing or sale of the investment property, with limited operational cash flow history. Credit approval is conditional on evidence of a feasible repayment strategy and maintenance of regulatory filing compliance.

RUTLAND GATE PROPERTY LIMITED - Analysis Report

Company Number: 14355632

Analysis Date: 2025-07-29 17:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rutland Gate Property Limited is a newly incorporated private limited company engaged in real estate investment activities. The company has acquired an investment property valued at approximately £1.54M funded largely by a short-term bridging loan of £1.57M, creating a significant current liability that exceeds its current assets by over £1.5M. While the property serves as collateral for the loan, the company’s liquidity position is weak, and the ability to service the bridging loan depends on refinancing or property sale. Given the company’s early stage and lack of operational cash flow history, credit approval should be conditional upon demonstration of a clear repayment plan or evidence of refinancing arrangements to cover the short-term loan.

2. Financial Strength:
   The company’s balance sheet shows total net assets of only £10,000, representing the issued share capital. Fixed assets now include a newly acquired investment property at £1.54M, which is the primary asset. However, the current liabilities of £1.58M are mainly short-term borrowings secured against the property, leading to a negative working capital position of £1.53M. The balance sheet is therefore leveraged with limited equity buffer, reflecting high financial risk. The absence of retained earnings or reserves and the very early stage of operations limit financial resilience.

3. Cash Flow Assessment:
   Cash on hand is modest at £9,437, insufficient to cover the large current liabilities due within one year. Debtors of £36,871 appear to be minimal and likely not recurring income. The company has no history of operating cash flows as it was incorporated in late 2022 and acquired its property during 2023. The bridging loan’s short maturity necessitates refinancing or asset disposal to meet obligations. The current liquidity profile is weak, with a significant risk of cash flow shortfall unless external financial support or refinancing is secured.

4. Monitoring Points:

• Progress on refinancing or repayment of bridging loan to reduce short-term liabilities
• Property valuation fluctuations and potential impairments impacting collateral value
• Development of operating cash flow or rental income streams to improve liquidity
• Timely filing of next accounts and confirmation statements to monitor financial updates
• Any changes in director or control that may affect company strategy or financial management