Company Number: 13778870

Analysis Date: 2025-07-20 15:10 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Velasquez 5A Limited is a newly incorporated private limited company (since December 2021) engaged in construction of commercial buildings, with a very substantial investment property asset currently under development. The company’s net assets are strong at £2.71 million, supported largely by the revalued investment property of £3.68 million. However, the company shows a significant working capital deficiency with net current liabilities of approximately £330k, driven by current liabilities of £406k against very modest current assets of £77k. The company has minimal cash (£100) and debtors of £76,664, indicating limited liquidity. There is no trading history beyond this first reporting period, and operations appear to be at a developmental stage without employees. The parent or controlling entity (Monamy Trustees Limited) holds full control, which may provide additional financial support. Lending or credit facilities should be conditioned on clearer cash flow forecasts, evidence of ongoing funding or liquidity support, and close monitoring of project milestones and working capital management.

Financial Strength:
The balance sheet is asset-strong with £3.68 million in investment property valued at fair value, which includes a significant revaluation surplus (£3.35 million). Net assets of £2.71 million demonstrate positive equity, reflecting accumulated profits primarily from this revaluation. The company’s share capital is nominal (£100), indicating limited paid-in equity. Deferred tax liabilities of £634k related to the property valuation reduce net assets. The large current liabilities position relative to current assets is a weakness and indicates potential short-term liquidity pressure. The lack of historic revenue or profit from operations (no turnover disclosed) suggests the company is still in the asset investment phase rather than generating operating cash flow.

Cash Flow Assessment:
Liquidity is very limited, with only £100 cash and £76,664 in debtors against current liabilities of £406,750. This creates a negative net current asset position of £330k, implying the company does not currently have sufficient liquid resources to meet short-term obligations without additional funding or support. The company relies on the parent/controlling trustee entity for financial backing. The going concern statement from directors points to expectations of positive future operating cash flows and support from related trusts, but this remains unproven. There are no employees, and the company’s revenue is derived solely from rental income, which may be limited or not yet commenced given the property is under development.

Monitoring Points:

• Liquidity and working capital trends: Watch for improvements in cash balances and reduction of current liabilities.
• Progress on investment property development and subsequent rental income generation.
• Confirmation of ongoing financial support from Monamy Trustees Limited or other related parties.
• Timely filing of future accounts and confirmation statements to ensure regulatory compliance.
• Any changes in deferred tax liabilities or revaluation adjustments impacting equity.
• Director changes or indications of operational activity ramping up, including employment or revenue growth.