ST MICHAEL'S PROPERTY SPV LIMITED

Executive Summary

ST MICHAEL'S PROPERTY SPV LIMITED shows a distressed financial position characterized by a negative net asset base and severe working capital deficits. The company’s ability to service debt without director support is questionable, indicating a high credit risk. Careful monitoring of liquidity improvements and director backing is essential before considering credit exposure.

ST MICHAEL'S PROPERTY SPV LIMITED - Analysis Report

Company Number: 14041017

Analysis Date: 2025-07-29 14:46 UTC

1. Credit Opinion: DECLINE
   ST MICHAEL'S PROPERTY SPV LIMITED exhibits a weak credit profile primarily due to its persistent negative net asset position, with net liabilities of approximately £49,000 as of the latest accounts. The company’s current liabilities heavily exceed its current assets, indicating a significant working capital deficit and liquidity risks. Its dependency on director support for going concern also raises concerns about its standalone ability to meet debt obligations without external assistance.

2. Financial Strength:
   The company holds fixed assets valued at £342,530, but this is offset by current liabilities of £397,008, resulting in negative net current assets of £391,991. Total net assets remain negative (around -£49,461), reflecting accumulated losses or liabilities exceeding assets. Despite the fixed asset base, the balance sheet is under strain from short-term creditors, and equity is negative, signaling weak financial resilience.

3. Cash Flow Assessment:
   Current assets are minimal (£5,017), predominantly cash or receivables, insufficient to cover short-term liabilities approaching £400k. This mismatch indicates poor liquidity and working capital management, suggesting difficulty in meeting immediate financial obligations. The company’s cash flow is likely reliant on timely director funding or refinancing, which is not sustainable for credit risk purposes.

4. Monitoring Points:

• Monitor changes in current liabilities and efforts to reduce short-term creditor balances.
• Track director financial support or capital injections to assess ongoing viability.
• Review any improvements in cash balances and receivables turnover.
• Watch for updated accounts that reflect profitability or asset disposals improving net asset position.
• Assess any changes in creditor payment terms that may alleviate liquidity stress.