SWAN PROPERTY MAINTENANCE LTD

Executive Summary

Swan Property Maintenance Ltd is a micro company showing modest asset growth but with a significant working capital deficit that compromises short-term liquidity. Conditional credit approval is advised with careful structuring and monitoring focused on liquidity improvement and cash flow generation. The company’s small scale and single-director control indicate manageable operational complexity but limited financial resilience.

SWAN PROPERTY MAINTENANCE LTD - Analysis Report

Company Number: SC730986

Analysis Date: 2025-07-29 14:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Swan Property Maintenance Ltd shows modest growth in net assets from £309 to £1,812 over two years, indicating some improvement. However, the company has a persistent and significant net current liability position (working capital deficit) of £168,459 as of April 2024, which is a concern for short-term liquidity and debt servicing ability. The company is micro-sized with only one employee (the director), and the controlling interest is consolidated under one major shareholder and director, suggesting tight management control but limited operational scale. Approval could be considered if the credit facility is structured to mitigate liquidity risk (e.g., secured or with a short tenor) and with ongoing monitoring.

2. Financial Strength:
   The balance sheet presents a small but positive net asset base (£1,812) supported mainly by fixed assets (£170,821), which have increased significantly from the prior year (£69,020). The current asset base has also increased but remains small (£49,364). The large current liabilities (£217,823) far exceed current assets, causing a substantial working capital deficit, which signals potential difficulties in meeting short-term obligations without additional capital or cash flow support. Shareholders’ funds remain minimal, reflecting the company’s nascent stage and limited retained earnings.

3. Cash Flow Assessment:
   The working capital deficit is the main concern, indicating that the company may struggle to cover its short-term liabilities with current assets. This puts liquidity under pressure and may necessitate external funding or timely collections from debtors to meet obligations. The lack of a disclosed profit and loss account limits insight into operating cash generation, but the limited staff and scale suggest low overheads. Cash flow risk remains elevated given the current liability burden and micro size.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to monitor ongoing ability to cover short-term debts.
• Working capital trend: Watch for improvements or further deterioration in current asset and liability balances.
• Cash flow from operations: Once available, assess if operating cash flow supports debt service.
• Capital injections or loans: Track any new funding that improves liquidity and net asset position.
• Payment behaviour: Monitor any trade payment delays or defaults that could signal financial stress.