Company Number: 14120858

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   TBAC PROPERTIES LIMITED is a micro-entity operating in real estate letting with a very recent incorporation date (May 2022). The company’s financials for the year ended May 2024 reveal a weak liquidity position with net current liabilities of £184,955 and minimal shareholders’ funds (£642). The fixed assets of £187,133 indicate some property holdings, but current liabilities exceed current assets by a significant margin. The company is not in liquidation and has no overdue filings, showing compliance. The director holds substantial control and appears to be actively managing the business. However, the negative working capital and low equity signal risk in the company’s ability to service debt without additional capital or cash inflows. Therefore, credit approval should be conditional on improved liquidity or secured repayment sources.

2. Financial Strength:
   The balance sheet shows total fixed assets of £187,133 supported by very low net assets of £642, reflecting minimal retained earnings or capital buffer. The current liabilities of £215,651 significantly exceed current assets of £30,696, resulting in a net current liability position which is a concern for short-term solvency. The company has only two employees and has not provided a profit and loss statement, limiting insight into profitability and cash generation. Overall, the financial strength is fragile with limited equity and poor short-term financial health.

3. Cash Flow Assessment:
   Cash levels are low (reported £100 in prior year, current year cash not separately disclosed but implied low given current assets). The large current liabilities relative to current assets indicate potential cash flow constraints. Negative net working capital suggests the company may struggle to meet near-term obligations without external funding or asset disposals. No audit or detailed cash flow statements are available to confirm the operational cash generation capacity. Monitoring cash flow closely is essential.

4. Monitoring Points:

• Liquidity position: Track changes in current assets and liabilities and cash balances to ensure working capital improves.
• Profitability and cash flow: Request periodic management accounts or bank statements to verify ongoing cash inflows and ability to service debt.
• Director changes or additional capital injections which could impact financial stability.
• Payment history on any credit facilities extended.
• Any changes in asset valuations or additional debt taken on.