SNL PROPERTY LIMITED

Executive Summary

SNL Property Limited exhibits a fragile financial profile with persistent negative working capital and minimal net assets, raising concerns about its ability to meet short-term liabilities. The lack of operational employees and limited liquidity point to weak cash flow generation, which undermines creditworthiness. Without clear signs of improved financial health or funding support, extending credit is not advisable at this time.

SNL PROPERTY LIMITED - Analysis Report

Company Number: 13499074

Analysis Date: 2025-07-29 19:39 UTC

1. Credit Opinion: DECLINE
   SNL Property Limited presents a weak credit profile characterized by persistent negative net current assets and very limited net asset value. The company’s ability to service debt appears constrained due to working capital deficits and minimal liquidity. The absence of employees and reliance on fixed assets with negligible current asset coverage raises concerns about operational cash flow generation. The company’s micro-entity status and limited financial disclosures also restrict visibility into profitability and cash flow trends. Without substantial equity or evidence of improving liquidity, granting credit exposure poses significant risk.

2. Financial Strength:
   The balance sheet shows fixed assets of approximately £147k largely unchanged over recent years, but current liabilities exceed current assets by over £145k, resulting in a net current liability position. Net assets remain very low at around £1.7k, indicating minimal shareholder equity. This thin equity base exposes the company to solvency risks if liabilities increase or asset values decline. The company has maintained a consistent but very modest net asset position since incorporation with no material improvement, implying fragile financial resilience.

3. Cash Flow Assessment:
   Current assets are limited to about £5.6k, predominantly cash or equivalents, against short-term liabilities of £150.8k, indicating a significant liquidity shortfall. The persistent negative working capital implies the company may struggle to meet short-term obligations without external funding or asset disposals. There is no evidence of revenue or operational cash inflows as the company reports zero employees and no audit/management commentary on trading performance. This lack of cash flow generation ability undermines confidence in debt servicing.

4. Monitoring Points:

• Working capital ratios and changes in current liabilities
• Cash balances and liquidity position updates, especially around the next accounts filing
• Any evidence of revenue or operational activity that could improve cash flow
• Changes in fixed assets and any related financing arrangements
• Director or shareholder injections of equity or loans to support operations