THREE COUSINS ESTATES LIMITED

Executive Summary

Three Cousins Estates Limited exhibits severe liquidity and solvency weaknesses with current liabilities vastly exceeding current assets and negative net assets. The company’s minimal turnover and cash flow generation capacity undermine its ability to service debt or meet short-term obligations. Given the financial profile and limited operational activity, credit facilities are not recommended at this stage without significant improvement in financial health or asset backing.

THREE COUSINS ESTATES LIMITED - Analysis Report

Company Number: 14895751

Analysis Date: 2025-07-29 12:57 UTC

1. Credit Opinion: DECLINE
   Three Cousins Estates Limited demonstrates significant liquidity and solvency concerns. Despite holding investment property valued at £489,824, the company has net current liabilities nearing £491,756 and net liabilities of £1,932 at the last reporting date. The high current liabilities (£506,308) relative to minimal current assets (£14,552) and cash (£13,670) indicate poor short-term liquidity and an inability to meet immediate obligations. The company’s turnover is negligible (£525 in 2024), with no employees and minimal operational activity, which raises concerns about its ability to generate sufficient cash flow to service debt or sustain operations. Without a clear plan to address the negative working capital and accumulated losses, the risk of default is high.

2. Financial Strength:
   The balance sheet shows a single investment property asset (£489,824) that has not been independently revalued recently, which may impact its realizable value. Current assets are minimal and primarily cash and prepayments. Current liabilities are predominantly other creditors (£504,724), suggesting short-term borrowing or payables that greatly exceed liquid assets. The net assets position remains negative (although improved from -£9,335 in 2024 to -£1,932 in 2025), signaling ongoing losses retained in the business. Shareholders’ funds are minimal (£100 share capital) and the company has no equity cushion to absorb financial shocks.

3. Cash Flow Assessment:
   Cash balances have improved from £1,269 to £13,670 year-on-year; however, this remains insufficient against current liabilities exceeding half a million pounds. The company’s negligible turnover and absence of employees indicate limited operational cash generation. Net current liabilities indicate a working capital deficit, increasing liquidity risk. Without additional funding or asset disposals, the company’s cash flow position is inadequate to meet creditor demands or finance ongoing operations.

4. Monitoring Points:

• Liquidity ratios, especially current ratio and quick ratio, to detect any improvement or deterioration in short-term financial health.
• Debtor and creditor aging to assess collection effectiveness and creditor payment terms.
• Investment property valuation updates by independent valuers to establish collateral value and potential for asset-backed financing.
• Turnover and cash flow trends for signs of operational growth or further decline.
• Any changes in director appointments or shareholding structure that may impact governance and control.