SP PROPERTIES GROUP LTD

Executive Summary

SP PROPERTIES GROUP LTD is a newly formed micro-entity with minimal financial history and very limited net assets, indicating weak financial strength and constrained liquidity. Conditional approval is recommended with tight exposure limits and ongoing monitoring of cash flow and equity improvements to mitigate credit risk. Close oversight is essential given the company’s early stage and thin capital base.

SP PROPERTIES GROUP LTD - Analysis Report

Company Number: 14848244

Analysis Date: 2025-07-29 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SP PROPERTIES GROUP LTD is a newly incorporated micro-entity operating in real estate management and trading. With minimal operating history (less than 1 year) and very limited trading activity, the company’s financial base is weak, shown by net assets of only £100. While there are no overdue filings or signs of distress, the very low asset base and current working capital position restrict credit capacity. Approval is recommended only with conditions such as limits on credit exposure, closely monitored financial performance, and additional security or guarantees if lending.

2. Financial Strength
   The balance sheet as of 31 May 2024 shows current assets of £1,300 and current liabilities of £1,200, yielding net current assets of £100. Total net assets equal £100, supported entirely by shareholders’ funds. The company has no fixed assets or retained earnings, reflecting its early stage. The balance sheet is solvent but extremely thin, providing minimal cushion against operational or market risks. Financial strength is currently weak due to the negligible equity and limited asset base.

3. Cash Flow Assessment
   Cash liquidity appears very constrained given current assets barely cover short-term liabilities. No detailed cash flow statement is provided, but the micro-entity status and small asset base suggest limited internal cash generation. Working capital is positive but minimal, indicating the company may struggle with cash demands beyond routine payables. The business will likely require external funding or capital injections to support growth or absorb shocks.

4. Monitoring Points

• Track subsequent trading results and cash flow statements to assess liquidity improvements.
• Monitor increases in net assets and equity injections that strengthen financial resilience.
• Watch for timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Review director conduct and any changes in ownership or control that may impact governance.
• Assess any new contracts or real estate transactions that could materially affect credit exposure.