SHELTER INVESTMENTS LTD

Executive Summary

Shelter Investments Ltd is a micro-entity with a fragile financial structure characterized by high leverage and negative net assets. The company currently lacks sufficient working capital and equity buffer, exposing it to liquidity risks. Conditional credit approval is advised, emphasizing ongoing monitoring of cash flows, equity strengthening, and creditor management.

SHELTER INVESTMENTS LTD - Analysis Report

Company Number: 14250128

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Shelter Investments Ltd is a very young micro-entity with minimal equity and significant long-term liabilities slightly exceeding fixed assets. The company shows a negative net asset position (£-2,274) as of July 2024, indicating weak capitalisation. However, there is no indication of insolvency or overdue filings. Given the sector (residential nursing care and real estate investment trusts), which generally requires stable funding and regulatory compliance, the company’s ability to service its debt depends heavily on future cash flow generation. Conditional approval is recommended subject to monitoring cash flow and capital injections or debt restructuring plans.

2. Financial Strength
   The balance sheet shows fixed assets of £304,646 supported by long-term creditors of £305,000, indicating the company has financed its assets almost entirely by debt. Current assets are low (£13,467) and current liabilities slightly exceed current assets resulting in negative net current assets (£-1,920). Total net assets are marginally negative, suggesting no retained earnings or capital buffer to absorb losses. The balance sheet is fragile and indicates high financial leverage and limited equity support.

3. Cash Flow Assessment
   The company has very limited liquid assets (cash was £200 in 2023, current assets only £13,467 in 2024) and net current liabilities. With an average of 2 employees and a micro-entity classification, working capital is tight. The negative net current assets and reliance on long-term creditors imply potential liquidity risks. Without detailed profit and loss or cash flow statements, the ability to generate positive operating cash flows to meet short-term obligations is uncertain. Close attention should be paid to operating cash flow generation and timing of creditor payments.

4. Monitoring Points

• Net asset position and equity injections or debt restructuring
• Operating cash flow and liquidity ratios (current ratio, quick ratio)
• Creditors’ ageing and ability to meet creditor obligations timely
• Changes in fixed assets utilization and impairment risks
• Business performance in residential nursing care and real estate sectors
• Director changes and governance updates (one director resigned recently)