Company Number: 13643695

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Selst Property Limited operates in the real estate letting sector with significant fixed assets primarily in investment property. The company demonstrates stable asset valuation but carries very high current liabilities relative to current assets, indicating liquidity stress. The positive net asset position is marginal and has only slightly improved year-on-year. Given the nature of the business and the sizeable bank loan, credit approval should be conditional on continued strong covenant compliance, monitoring of liquidity, and assurance of rental income cash flows.

2. Financial Strength:

• Fixed assets total £3.25m (primarily investment property), stable versus prior year.
• Current assets at £134k are insufficient to cover current liabilities of £1.55m, resulting in net current liabilities of £1.41m.
• Long-term liabilities (bank loans) of £1.83m nearly offset total assets less current liabilities (£1.84m), leaving net assets at a nominal £8.8k.
• Shareholders’ funds remain positive but very low, increasing slightly from £4.9k to £8.8k, indicating minimal retained earnings.
• No employees, suggesting low overheads but also limited operational scale.

3. Cash Flow Assessment:

• Cash reserves improved from £37k to £92k, a positive sign, but remain low relative to current liabilities.
• Debtors reduced from £57k to £43k, showing some collection but still modest.
• The large current liabilities likely reflect short-term borrowings or creditor balances that need to be managed carefully.
• Negative working capital position indicates potential liquidity risk and the need for tight cash flow management to meet short-term obligations.

4. Monitoring Points:

• Track rental income stability and cash inflows to ensure servicing of bank loans and current liabilities.
• Monitor net current liabilities and cash flow forecasts to avoid liquidity shortfalls.
• Watch for any deterioration in property valuations that could impact security for lending.
• Review any changes in bank loan terms or covenant breaches.
• Assess directors’ ongoing management of working capital and creditor relations.