SIMPLY MARVELLOUS PROPERTIES MANAGEMENT LIMITED

Executive Summary

Simply Marvellous Properties Management Limited shows modest growth and asset investment but faces liquidity pressure due to negative working capital and high current liabilities. The company’s cash position has improved, yet close monitoring of short-term obligations and cash flow management is essential. Conditional credit approval is recommended, contingent on ongoing liquidity and operational performance reviews.

SIMPLY MARVELLOUS PROPERTIES MANAGEMENT LIMITED - Analysis Report

Company Number: 13835652

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Simply Marvellous Properties Management Limited is a relatively new private limited company incorporated in 2022, operating in the real estate management sector. The company currently demonstrates a positive growth trajectory in net assets (£14,412 in 2022 to £21,368 in 2023) and an increase in tangible fixed assets, indicating investment in operational capability. However, the company has significant net current liabilities (£85,620 as of 2023 year-end) and recurring negative working capital, which pose liquidity risks. The director is the sole shareholder with full control, which simplifies decision-making but also concentrates risk. Given these factors, credit approval is possible but with conditions focusing on monitoring liquidity and working capital closely.

2. Financial Strength:

• The balance sheet shows total assets increasing mainly due to tangible fixed assets (motor vehicles), now £106,988 in 2023 from £93,582 in 2022.
• Current assets stand at £72,995 (up from £41,707), driven by cash balances (£69,194) with low debtor levels (£3,801), which is positive for cash conversion.
• However, current liabilities have grown disproportionately to £158,615, resulting in a net current liability position of £85,620. This indicates short-term obligations exceed liquid assets significantly.
• Shareholders’ funds increased from £14,412 to £21,368, reflecting retained earnings accumulation (£11,368).
• The company is meeting filing deadlines and is not in liquidation, which supports operational continuity.

3. Cash Flow Assessment:

• Cash holdings have improved, nearly doubling to £69,194 in 2023, which is a strong point for immediate liquidity.
• Debtors are low and decreasing, suggesting efficient receivables management.
• The significant current liabilities, including trade creditors (£9,021) and other creditors (£124,917), highlight the need for caution in cash flow management.
• The negative working capital is a concern and points to potential pressure in meeting short-term liabilities without additional funding or improved cash collection.

4. Monitoring Points:

• Monitor working capital trends closely to ensure the company can meet current liabilities without resorting to overdrafts or short-term borrowings.
• Watch cash flow statements when available for signs of operational cash generation or increasing reliance on creditor financing.
• Keep track of any changes in director control or ownership that could affect governance or financial decisions.
• Review any changes in creditors’ composition, especially large other creditors, to assess if payment terms are sustainable.
• Monitor turnover and profitability trends once profit and loss data is available to assess the ability to generate earnings for debt servicing.