SIREN PROPERTY DEVELOPMENTS LTD

Executive Summary

Siren Property Developments Ltd shows reasonable net asset backing but faces liquidity challenges due to a negative working capital position in the latest year. Credit approval should be conditional on receipt of updated financial information and cash flow assurances to mitigate short-term repayment risk. Ongoing monitoring of liquidity and project progress is essential given the company’s micro-entity status and limited trading history.

SIREN PROPERTY DEVELOPMENTS LTD - Analysis Report

Company Number: 13764221

Analysis Date: 2025-07-29 16:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Siren Property Developments Ltd is a micro-entity in the building development sector, with a short trading history since incorporation in late 2021. The latest accounts show a decline in liquidity and a net current liability position, which raises concerns about short-term working capital sufficiency. However, the company maintains positive net assets and shareholder funds, indicating underlying equity support. Given the lack of audit and limited financial disclosures, the credit facility should be conditional on obtaining updated management accounts and confirmation of cash flow projections to ensure the company can meet near-term obligations.

2. Financial Strength:

• Fixed assets have increased from zero to £183,682, reflecting investment in property or equipment relevant to development projects.
• Net assets remain positive at £114,141, supported by shareholders’ funds, but have slightly decreased from £118,727 in the prior year, indicating marginal erosion in equity.
• The key concern is the shift from net current assets of £119,477 in 2022 to net current liabilities of £68,791 in 2023, showing a liquidity squeeze.
• Accruals and deferred income are negligible (£750), so no significant hidden liabilities are indicated.

3. Cash Flow Assessment:

• Current assets dropped sharply from £192,889 to £31,478, with current liabilities rising from £73,412 to £100,269, resulting in a negative working capital position.
• This suggests cash flow pressures, possibly due to increased short-term payables or decreased receivables/cash balances.
• No employees are reported, indicating minimal payroll burden, but also potential operational constraints.
• Absence of profit and loss data limits assessment of operational cash generation; further financial disclosure is needed.

4. Monitoring Points:

• Quarterly or interim management accounts to track current asset and liability movements.
• Cash flow forecasts to confirm ability to cover short-term debts and project funding requirements.
• Progress on development projects (asset utilization and revenue recognition).
• Any changes in ownership or director appointments that may affect governance or financial strategy.