STEDA PROPERTIES LIMITED

Executive Summary

Steda Properties Limited is a micro-entity with strong fixed assets backing but limited liquidity and equity. Its newly established status and low working capital warrant a conditional credit approval, with secured lending recommended and cash flow closely monitored. The company’s ability to convert property assets into cash flow and manage liabilities will be critical for ongoing creditworthiness.

STEDA PROPERTIES LIMITED - Analysis Report

Company Number: 14569365

Analysis Date: 2025-07-29 19:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Steda Properties Limited is a newly incorporated micro-entity engaged in building project development. The company shows a strong asset base with tangible fixed assets of £1.6M, primarily property-related, supported by minimal current liabilities. However, the net asset position is modest at £12.5k, and cash reserves are limited at £18.4k. The absence of trading history beyond the initial year and minimal working capital restricts a full credit approval. Lending could be considered with conditions such as secured lending against tangible assets and monitoring of cash flow to ensure debt servicing capability.

2. Financial Strength:
   The balance sheet is dominated by tangible fixed assets (£1.6M), indicating significant investment in property assets. Current assets are low (£18.4k), but current liabilities are also minimal (£5.9k), resulting in positive net current assets of £12.5k. The company carries a long-term creditor liability of £1.6M, presumably related to property financing or shareholder loans, which matches the fixed asset value. Shareholders' funds stand at a low £12.5k, reflecting early-stage equity injection and accumulated profits (or reserves) of £12.4k. Overall, financial strength is asset-backed but equity-light.

3. Cash Flow Assessment:
   Cash at bank is very limited at £18.4k, which is low relative to the size of liabilities due within one year (£5.9k). This gives a narrow liquidity buffer. The company’s working capital is positive but minimal (£12.5k), which may constrain operational flexibility. Without detailed cash flow statements, the ability to generate ongoing positive cash flows is uncertain, especially given the development nature of the business which often involves upfront costs and delayed revenues. Close attention to cash flow forecasts and timely repayment capacity is advised.

4. Monitoring Points:

• Liquidity and working capital trends, ensuring cash balances improve to cover short-term obligations safely.
• Servicing of the long-term creditor balance (£1.6M), including any repayment schedules or refinancing plans.
• Progress on development projects and associated revenue recognition, impacting profitability and cash inflows.
• Director conduct and governance, noting both directors are significant shareholders involved in management.
• Timely filing of accounts and confirmation statements, which currently are up to date.