SCRAM PROPERTIES LIMITED

Executive Summary

SCRAM PROPERTIES LIMITED is financially distressed with negative net assets and working capital deficits. Its liquidity position is weak, relying on directors’ funding assurances rather than operational cash flows. Due to elevated credit risk and lack of financial resilience, credit facilities are not recommended at this stage without significant improvement or additional security.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

SCRAM PROPERTIES LIMITED - Analysis Report

Company Number: 13118704

Analysis Date: 2025-07-20 13:28 UTC

  1. Credit Opinion: DECLINE
    SCRAM PROPERTIES LIMITED exhibits significant financial distress with persistent negative net assets (£-20,736 as at 31 January 2024) and substantial current liabilities (£158k) exceeding current assets, producing a negative net working capital position (-£156,916). The company's cash balance is minimal (£1,367), indicating very limited immediate liquidity to cover short-term obligations. The substantial non-current borrowings (£225k) further pressure the capital structure. The lack of independent valuation for investment property and reliance on directors’ valuation introduces uncertainty over asset realizable value. The company remains insolvent on a balance sheet basis and has not demonstrated profitability or equity recovery since incorporation in 2021. Given these factors, the risk of default is elevated and the company's ability to service debt and meet commercial commitments is questionable.

  2. Financial Strength:
    The balance sheet shows a weak financial position. Total assets of £361k are mainly fixed assets classified as investment property, but the valuation is not independently verified and is static since 2022. Current liabilities exceed current assets by a significant margin, resulting in negative working capital. Shareholders’ funds are negative, reflecting accumulated losses. The company is highly leveraged with borrowings exceeding net assets by over tenfold. No retained earnings or capital injections appear to have improved the solvency position. The financial trajectory is flat to deteriorating, with no sign of profitability or asset revaluation improving net worth.

  3. Cash Flow Assessment:
    Cash on hand is minimal and declining (£3,943 in 2021 to £1,367 in 2024), indicating constrained liquidity. Negative net current assets imply working capital deficit, which may impair the company’s ability to pay debts as they fall due without additional financing or asset disposal. The consistent level of creditors falling due within one year and significant loan balances due after one year suggest ongoing cash demands. The company’s reported going concern assertion relies on directors’ arrangements for funding rather than operational cash generation, highlighting dependency on external support.

  4. Monitoring Points:

  • Closely track cash flow and liquidity metrics monthly to detect worsening short-term payment capability.
  • Monitor any independent valuation updates or asset disposals that could improve the balance sheet.
  • Review the company’s ability to refinance or restructure loan facilities to reduce leverage.
  • Assess profitability trends or operational cash flow improvements in future accounts filings.
  • Observe directors’ disclosures on going concern assumptions and funding arrangements.
  • Stay alert for changes in creditors’ terms or any legal actions due to overdue liabilities.

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