SYNERGY PROPERTY & DEVELOPMENT LTD

Executive Summary

Synergy Property & Development Ltd is a newly formed property company with substantial fixed assets but carries significant long-term liabilities resulting in a slightly negative net asset position. While short-term liquidity is adequate, the company’s financial risk is elevated due to heavy reliance on related-party funding and limited operating history. Credit approval is conditional on ongoing director support and close financial monitoring.

SYNERGY PROPERTY & DEVELOPMENT LTD - Analysis Report

Company Number: 14778457

Analysis Date: 2025-07-20 16:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Synergy Property & Development Ltd is a newly incorporated property company with limited financial history. The company holds tangible fixed assets valued at approximately £1.1 million but reports a negative net asset position of -£6,125 due to significant long-term liabilities totaling £1.12 million. The presence of bank loans (£115.5k) and large amounts owed to associates (£936.9k) raises concerns about leverage and related-party exposures. However, current liabilities are low (£1,200), and net current assets are positive (£12,910), indicating some short-term liquidity. Given its startup status, limited operational data, and reliance on related-party funding, credit approval should be conditional on continued support from directors/owners and regular financial updates.

2. Financial Strength:
   The balance sheet shows a strong fixed asset base from property holdings (£1,103k) but is significantly leveraged with over £1.12 million in creditors due after one year. The negative shareholders’ funds (-£6,125) indicate that liabilities slightly exceed assets, primarily due to the long-term debt and amounts owed to associates. The company's equity base is minimal (£100 share capital), reflecting its recent formation. The financial structure suggests high financial risk, typical of early-stage property development companies reliant on external funding.

3. Cash Flow Assessment:
   Cash at bank is modest at £14,110, and current liabilities are minimal (£1,200), resulting in positive net current assets of £12,910. However, cash levels are low relative to total debt, indicating limited liquidity to cover ongoing operational costs or debt servicing without additional funding. The company has no employees and no declared profit or loss statement yet, so operating cash flows cannot be assessed. Working capital is currently positive but tight, and the company’s ability to generate cash flow from its property assets is uncertain at this stage.

4. Monitoring Points:

• Track repayment progress on bank loans and amounts owed to associates to assess leverage reduction.
• Monitor cash flow generation from property activities and any new income streams.
• Review subsequent financial filings for profit and loss data to evaluate operational performance.
• Assess ongoing director/owner financial support and any changes in related-party balances.
• Watch for any overdue filings or changes in company status that could indicate financial distress.