STEPHENPANGPROPERTIES LTD

Executive Summary

Stephenspangproperties Ltd exhibits poor financial health with negative net assets and significant liquidity shortfalls, indicating a high risk of default on credit obligations. The company’s balance sheet and cash flow position do not support additional lending without substantial mitigation. Credit approval is not recommended at this time.

STEPHENPANGPROPERTIES LTD - Analysis Report

Company Number: 12717597

Analysis Date: 2025-07-29 19:27 UTC

1. Credit Opinion: DECLINE

Stephenspangproperties Ltd shows a weak financial position with negative net assets of £11,001 as at 31 July 2024, deteriorating from negative £7,891 the previous year. The company’s total liabilities exceed total assets, indicating insolvency on a balance sheet basis. Current liabilities are significantly higher than current assets, resulting in negative net current assets of £35,714. These factors suggest an inability to service debt obligations reliably. Without evidence of positive cash flow generation or external support, extending credit involves high risk.

2. Financial Strength:

The company’s balance sheet reveals a fixed asset base of £86,254, likely representing property holdings given the SIC code (real estate letting). However, liabilities surpass assets, with creditors due within one year at £37,479 and long-term creditors at £61,541, totaling nearly £99,000. Negative shareholders’ funds indicate accumulated losses or financial strain. The company's micro-entity reporting status limits available detail, but the persistent negative net worth and high leverage are concerning.

3. Cash Flow Assessment:

Current assets of £1,765 are minimal compared to current liabilities of £37,479, highlighting liquidity issues and insufficient working capital to cover short-term obligations. The company appears to have limited cash or receivables to meet creditor demands promptly. With only one employee and no audit, operational scale is very small, and cash inflows from letting activities seem inadequate to strengthen liquidity. This weak working capital position raises concerns about the company’s ability to sustain operations without additional funding.

4. Monitoring Points:

• Watch for improvements in net current assets and liquidity ratios to assess any recovery in short-term financial health.
• Monitor any changes in creditor terms or increases in liabilities that could exacerbate financial stress.
• Track director or shareholder actions for capital injections or restructuring plans.
• Review future filings for turnover or profit trends indicating operational improvement or deterioration.
• Keep alert for overdue filings or signs of insolvency procedures.