SUPPORTED LIVING PROPERTY NETWORK LTD

Executive Summary

Supported Living Property Network Ltd shows positive financial improvements and adequate liquidity for its size but has increased current liabilities, especially tax-related, which require careful management. Credit approval is recommended with conditions focusing on cash flow monitoring and timely tax payments. The company’s limited operating history and single-director structure warrant ongoing review of financial performance and stability.

SUPPORTED LIVING PROPERTY NETWORK LTD - Analysis Report

Company Number: 14121958

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Supported Living Property Network Ltd demonstrates improving financial health with positive net assets and working capital growth from £4,269 to £18,919 in shareholders’ funds and net current assets rising from £3,582 to £18,403 between 2023 and 2024. However, the company remains a small, single-director private limited company with limited operating history (incorporated in 2022) and modest tangible fixed assets. Current liabilities have increased significantly, notably corporation tax and other taxation, indicating potential cash flow pressures. The absence of a profit and loss account disclosure limits insight into operational profitability. Given these factors, credit approval is recommended with conditions: ongoing monitoring of cash flow, timely payment of tax liabilities, and confirmation of sustainable revenue growth.

2. Financial Strength:
   The company’s balance sheet reflects an improving equity base and working capital position. Net assets increased over fourfold in the latest year, supported by a substantial rise in cash balances (£54,417 from £18,775). Tangible fixed assets are minimal (£688), consistent with a service-oriented business model. Current liabilities have more than doubled, primarily due to a large corporation tax creditor (£22,650) and other tax-related liabilities (£7,027), which should be closely managed to prevent liquidity strain. Overall, the financial structure is stable for its size but remains tight with increased short-term obligations.

3. Cash Flow Assessment:
   Cash reserves have risen significantly, indicating improved liquidity. Net current assets are healthy and positive, suggesting the company can cover short-term obligations currently. However, the build-up of tax liabilities signals potential timing mismatches in cash outflows. The company employs only one person (the director), which keeps operating costs low but also means reliance on a single income stream. Cash flow should be regularly reviewed to ensure tax and creditor payments do not constrain operational funding.

4. Monitoring Points:

• Monitor corporation tax settlement and other current tax liabilities to avoid enforcement action.
• Track net current asset trends and cash conversion cycles to maintain liquidity.
• Request detailed profit and loss accounts or management accounts to assess profitability and revenue trends.
• Observe any changes in director status or additional appointments that may indicate business restructuring or risk.
• Review related party balances and repayment plans for potential off-balance-sheet risks.