VICTORIAN PROPERTY LIMITED

Executive Summary

Victorian Property Limited currently demonstrates weak financial health with net liabilities and negative working capital, undermining its ability to service debt. The company’s reliance on director support and absence of operational employees raise concerns about sustainability. Credit approval is not recommended without significant financial improvement and strengthened liquidity.

VICTORIAN PROPERTY LIMITED - Analysis Report

Company Number: 13238636

Analysis Date: 2025-07-29 14:13 UTC

1. Credit Opinion: DECLINE
   Victorian Property Limited exhibits a weak financial position with net liabilities of £12,567 as of the latest accounts (year ended 31 March 2025). Despite holding fixed assets valued at £77,470, the company has significant long-term liabilities (£70,507) which outweigh net current assets and shareholders' funds. The negative net asset position and current year loss of equity reflect financial distress. The absence of employees and reliance on director support for going concern status raises concerns about operational sustainability and management capacity. Given these factors, the company’s ability to service new or existing credit facilities is doubtful without substantial improvement in financial health.

2. Financial Strength:
   The balance sheet shows a micro-entity with modest fixed assets but high gearing due to significant creditor balances, especially long-term liabilities exceeding £70k. Net current assets are negative (£19,530), indicating working capital deficiency. Shareholders’ funds have deteriorated from £1,697 in the previous year to negative £12,567, signaling erosion of equity and potential insolvency risk. The company’s financial trajectory is negative, moving from a small positive net asset base to a net liability position in the latest year. Overall, financial strength is weak with poor solvency metrics.

3. Cash Flow Assessment:
   Current assets (£16,789) are insufficient to cover current liabilities (£36,319), resulting in negative working capital. This indicates liquidity constraints and potential difficulty meeting short-term obligations from operational cash flows. The company has no employees, which may reduce overheads but also points to limited operational activity generating cash. The directors’ statements note reliance on their support for continuing as a going concern, suggesting cash flow is dependent on shareholder injections rather than business-generated cash. Liquidity is therefore inadequate to comfortably support credit risk.

4. Monitoring Points:

• Improvement or further deterioration in net asset position and shareholders’ funds.
• Changes in long-term liabilities and creditor terms.
• Cash flow from operations and ability to generate positive working capital.
• Directors’ continued financial support or any external funding arrangements.
• Filing of timely accounts and confirmation statements to detect governance or compliance issues.
• Any operational developments such as acquisition or disposal of property assets impacting asset base.