WISEPLACE PROPERTY AND MANAGEMENT LTD

Executive Summary

WISEPLACE PROPERTY AND MANAGEMENT LTD is a start-up micro-entity with a modest asset base primarily in fixed assets and significant long-term liabilities. While the company has a positive net asset position, its cash flow and revenue generation remain unproven. Conditional credit approval is recommended pending further information on cash flow forecasts and creditor terms to mitigate financial leverage risks.

WISEPLACE PROPERTY AND MANAGEMENT LTD - Analysis Report

Company Number: 14480311

Analysis Date: 2025-07-29 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WISEPLACE PROPERTY AND MANAGEMENT LTD is a newly incorporated micro-entity specializing in real estate letting and management. The company shows positive net assets (£3,840) with fixed assets of £77,000, indicating initial investment in property or related assets. However, it carries a significant long-term creditor balance (£78,135) that exceeds current assets and net assets, which suggests external financing or liabilities that need monitoring. Given its young age and micro status with no employees, the company’s revenue generation and cash flow are unproven. Approval is conditional on obtaining up-to-date cash flow forecasts and confirmation of the nature and terms of the long-term liabilities.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities at £81,975, driven mainly by fixed assets (£77,000). Current assets of £4,975 slightly exceed current liabilities (zero reported), resulting in positive net current assets, indicating short-term liquidity is manageable. However, the presence of £78,135 in creditors due after more than one year creates a leverage risk relative to the reported net assets of only £3,840. The absence of retained earnings or reserves indicates no accumulated profits yet, which is typical for a company in its first full year. Overall, the financial strength is modest with leverage concerns that require careful scrutiny.

3. Cash Flow Assessment:
   No explicit cash or cash equivalents line is reported but current assets are minimal (£4,975), suggesting limited liquid resources. The lack of employees and small current assets imply low operating expenses currently, but also potentially limited income streams. The significant long-term creditors indicate reliance on external funding which could pressure future cash flows if repayment terms are stringent. The micro-entity status means limited disclosure, so detailed cash flow information is unavailable. Caution is warranted until positive operating cash flows are demonstrated.

4. Monitoring Points:

• Liquidity trends and working capital management as the company grows.
• Repayment schedule and terms of the £78,135 long-term creditors.
• Progress in generating rental income or management fees to cover liabilities.
• Changes in net assets and reserves indicating profitability or losses.
• Any changes in director or ownership structure, especially as Mr. Yiangou holds full control.
• Timely filing of future accounts and confirmation statements to monitor compliance.