Company Number: 14072143

Analysis Date: 2025-07-19 12:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Start-Base Properties Ltd is a recently incorporated private limited company engaged in buying and selling its own real estate. The company shows growth in fixed assets, increasing from £205k in 2023 to £395k in 2024, indicating ongoing investment or acquisition activity. However, net current liabilities have widened from £106k to £144k, and long-term liabilities have increased significantly from £93k to £225k, largely driven by loans. This leverage presents a moderate risk. Given the positive increase in net assets (£6k to £26k) and no overdue filings, the company appears operationally active but currently relies heavily on external financing. Approval is recommended with conditions focusing on monitoring liquidity and debt servicing capacity.

2. Financial Strength:
   The company’s balance sheet shows growth in tangible fixed assets, reflecting business expansion or asset acquisition. Net assets have improved from £5,982 in 2023 to £25,690 in 2024, which is positive but remains modest relative to total liabilities. The increase in both current and long-term liabilities, including a director’s loan account and other loans, suggests rising leverage. The small equity base and negative working capital (£144k deficit) highlight financial vulnerability, particularly if asset liquidity is limited. The absence of depreciation on freehold property supports asset value stability.

3. Cash Flow Assessment:
   Current assets are low relative to current liabilities, with cash at only £13,821 against current liabilities of £173,358, resulting in negative working capital of £144,412. Trade debtors of £15,125 provide some receivables inflow, but the company must rely on refinancing or asset sales to meet short-term obligations. The director’s loan account (£101,327) implies some internal funding support, which could be a liquidity buffer if available. However, the stretched liquidity position warrants caution, and the company’s ability to service debt from operating cash flow is uncertain without further cash flow details.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio trends to assess short-term payment capability.
• Debt servicing: Interest coverage and ability to meet loan repayments from cash flow.
• Asset quality and realizable value of fixed assets in a downturn.
• Director’s loan account stability and any changes in related party financing.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Any changes in ownership or management affecting control and decision-making.