S&GA HOLDING LIMITED

Executive Summary

The company is in its initial phase with a strong asset base but limited operational history. The balance sheet shows sound net asset coverage mainly from investment property, but liquidity and cash flow data are insufficient for full credit exposure. Conditional approval is recommended pending periodic financial updates to confirm operational viability and cash generation capacity.

S&GA HOLDING LIMITED - Analysis Report

Company Number: 15218014

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: APPROVE with conditions.
   S&GA HOLDING LIMITED is a newly incorporated private limited company (incorporated October 2023) operating in the letting and operation of own or leased real estate sector. The company shows a solid opening balance sheet with net assets of £79,036 primarily supported by an investment property asset of £80,000. However, the company has minimal share capital (£2) and no reported turnover or cash flow data yet, reflecting its early stage of operations. Credit approval should be conditional on obtaining updated management accounts and cash flow forecasts to confirm operational progress and liquidity before extending significant credit facilities.

2. Financial Strength:
   The company’s financial position at the first reporting date is stable in terms of net assets, with no long-term liabilities reported. Fixed assets (investment property) represent the bulk of the asset base, indicating a capital-intensive structure typical in real estate holdings. Current liabilities are minimal (£964), but net current assets are negative due to current liabilities exceeding current assets, which is not unusual for a start-up in this sector. The absence of depreciation on investment property (valued at fair market value) is consistent with accounting standards. The very low share capital relative to net assets suggests that retained profits or revaluation reserves have been booked, but detailed profit and loss data is not provided.

3. Cash Flow Assessment:
   There is no explicit cash or working capital data disclosed. Negative net current assets (-£964) imply a slight working capital deficit at this early stage, which should be monitored closely. Since the company has no reported employees or operational turnover yet, cash flow is likely to be limited to initial capital injections and any rental income from the property (if generating revenue). The liquidity profile is uncertain and requires ongoing review once operational cash flows commence.

4. Monitoring Points:

• Quarterly or semi-annual management accounts to monitor revenue generation and cash flow from property letting activities.
• Updates on tenant occupancy and rental income stability to assess ongoing income viability.
• Review of any new borrowings or liabilities that could impact working capital or solvency.
• Any changes in asset valuations or acquisition of additional properties.
• Director’s plans for operational expansion or capital raising to enhance financial resilience.