Company Number: 14832837

Analysis Date: 2025-07-20 15:31 UTC

1. Credit Opinion: DECLINE

SR Property Services Ltd is a newly incorporated company (April 2023) with only one financial year of data ending April 2024. The company is currently showing net liabilities of £1,397 and a shareholder deficit of £1,497. Its balance sheet reveals weak liquidity and high leverage: current liabilities of £53,128 are substantially greater than current assets of only £721, resulting in a net current liability position of £52,407. The company has significant long-term debt (bank loans) of £130,504 exceeding its total assets less current liabilities (£129,107). This indicates the company is highly leveraged and financially strained at this early stage. There is no profit and loss data available yet to assess earnings or cash flows. Given the negative net assets, poor working capital, and heavy borrowings, credit risk is high and the ability to meet debt obligations is questionable at this stage. Approval for new credit facilities is not recommended without substantial additional security or guarantees.

2. Financial Strength:

• Fixed assets of £181,514 mainly represent tangible assets (likely property).
• Current assets are minimal (£721 cash only), with no reported debtors or stock.
• Current liabilities (£53,128) and long-term liabilities (£130,504 bank loans) are significant, causing a net liability position.
• Shareholders funds are negative (-£1,497), reflecting accumulated losses or initial undercapitalization.
• The company is highly leveraged and lacks sufficient working capital to cover short term liabilities.

3. Cash Flow Assessment:

• Cash balance is very low (£721), indicating limited liquidity.
• No reported receivables or inventories to convert into cash quickly.
• Negative net current assets suggest potential cash flow difficulties to meet immediate obligations.
• Heavy long-term borrowings will require interest and principal repayments, stressing cash flow further.
• Absence of income statement or cash flow statement data limits detailed analysis, but overall liquidity appears inadequate.

4. Monitoring Points:

• Future profitability and cash generation from operations to improve liquidity.
• Timely repayment of bank loans and interest servicing.
• Changes in working capital components, especially increase in current assets or reduction in creditors.
• Management actions to strengthen equity base or obtain additional funding.
• Compliance with loan covenants and any signs of financial distress or late payments.