SOULSCAPE PROPERTY DEVELOPMENTS LIMITED

Executive Summary

Soulscape Property Developments Limited is currently financially distressed with sustained negative equity and worsening liquidity. The company’s cash reserves are nearly depleted, and it relies heavily on unsecured director loans. Given its inability to meet short-term liabilities and lack of profitability, it is not a suitable candidate for new credit facilities at this stage. Close monitoring of cash flow and capital improvements is essential before reconsidering credit exposure.

SOULSCAPE PROPERTY DEVELOPMENTS LIMITED - Analysis Report

Company Number: SC725007

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: DECLINE
   Soulscape Property Developments Limited exhibits significant financial distress. The company has a negative net asset position of approximately £10,476 as of 31 August 2024, worsening from the prior year. Negative shareholders’ funds and persistent net current liabilities indicate an inability to meet short-term obligations from current assets. The director’s loan is unsecured and interest-free, highlighting reliance on related-party funding rather than external creditworthiness. Given the lack of profitability, ongoing losses, and minimal cash reserves (£173), the company currently lacks the financial strength and liquidity to service new or existing debt reliably.

2. Financial Strength:
   The balance sheet reveals very weak financial health. Tangible fixed assets are minimal (£140) relative to current liabilities (£13,342). The company’s net current liabilities have increased from £6,845 to £10,616 within a year, indicating deteriorating working capital management. Shareholders’ equity is deeply negative (£-10,576), reflecting accumulated losses and an erosion of capital base. The company is in its start-up phase, with continued losses and no retained earnings to buffer financial shocks. There is dependency on director support (loan of £2,159) to maintain operations.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash on hand has plummeted from £2,868 to £173 in the latest period, limiting operational flexibility. Debtors (£2,553) are insufficient to cover current liabilities, and their collectability risk is unknown. The company’s working capital deficit and reliance on unsecured related-party loans create significant cash flow risk. There is no indication of external financing or profitable trading cash inflows. This cash flow profile suggests the company is not self-sustaining and may struggle to meet payment terms without further director injections or external funding.

4. Monitoring Points:

• Improvement in net current assets: Monitor if working capital deficits reduce through increased current assets or decreased liabilities.
• Cash flow trends: Watch for cash build-up or continued depletion in cash reserves.
• Profitability development: Track trading results and whether the company can generate profits to rebuild equity.
• Director loans and related-party transactions: Assess ongoing dependence on director funding and potential for formalising repayment terms.
• Creditors aging and payment performance: Monitor any late payments or creditor pressure that could signal impending liquidity crises.