S & A PROPERTIES HUDDERSFIELD LIMITED

Executive Summary

S & A Properties Huddersfield Limited shows signs of financial distress with negative net assets and poor liquidity, raising serious concerns about its ability to service debt. The company’s balance sheet is heavily leveraged with insufficient working capital, and no operational employees to support cash flow generation. Without significant financial restructuring or capital support, the credit risk is high and approval is not recommended.

S & A PROPERTIES HUDDERSFIELD LIMITED - Analysis Report

Company Number: 12521852

Analysis Date: 2025-07-29 16:50 UTC

1. Credit Opinion: DECLINE
   S & A Properties Huddersfield Limited demonstrates significant financial stress. The company’s net assets have shifted from positive (£4,349 in 2023) to a negative position (£-4,451 in 2024), primarily due to current liabilities and long-term creditors exceeding total assets. The negative equity position indicates that liabilities surpass assets, which raises concerns about solvency and the ability to meet debt obligations. The absence of employees and minimal current assets further limit operational flexibility and cash generation. Without improvement in working capital or capital injection, the company poses a high credit risk.

2. Financial Strength:
   The balance sheet is heavily leveraged with fixed assets valued at £238,700, but these are offset by substantial liabilities: short-term creditors of approximately £33,758 and long-term creditors of £208,897 as of March 2024. Net current assets are negative (£-32,224), indicating poor short-term financial health. The company’s equity has deteriorated to a negative value, signaling erosion of shareholder funds. The fixed assets may provide some security, but the overall financial structure is weak and undercapitalized.

3. Cash Flow Assessment:
   Current assets amount to only £1,534, which is insufficient to cover current liabilities of about £33,758, resulting in negative working capital. This indicates liquidity constraints and potential difficulty in meeting short-term obligations without additional financing. The lack of employees and presumably limited operational activity suggest minimal cash inflow from operations. The company’s cash flow position is precarious and would require external support to sustain operations.

4. Monitoring Points:

• Monitor changes in net current assets and liquidity ratios to assess short-term solvency.
• Track any capital injections or shareholder loans to improve equity and reduce negative net assets.
• Review any restructuring of liabilities, especially long-term debts, to ease financial pressures.
• Observe operational cash flows and whether the company can generate stable income from its property letting activities.
• Keep watch on any director actions or external factors that may impact financial stability.