YOUR PROPERTY SEARCH LTD

Executive Summary

YOUR PROPERTY SEARCH LTD demonstrates a small but positive financial position with adequate short-term liquidity to meet current obligations. However, the significant reduction in net assets and increased provisions warrant cautious credit approval, suitable only for limited credit exposure. Close monitoring of financial performance and cash flows is recommended to ensure ongoing creditworthiness.

YOUR PROPERTY SEARCH LTD - Analysis Report

Company Number: 12736881

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   YOUR PROPERTY SEARCH LTD is a micro-entity with modest financial scale and limited equity base (£1,365 net assets as of 31/07/2024). The company shows positive net current assets, indicating it can meet short-term obligations. However, net assets have decreased notably from £2,714 in 2023 to £1,365 in 2024, and provisions and accruals have increased, signaling some emerging liabilities or expenses. The low share capital and small scale imply limited financial buffer. The company’s ability to service larger credit facilities is constrained, but it may manage small credit lines. Approval is conditional on close monitoring of financial trends and confirmation of stable cash flows.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset position, with current assets of £33,372 exceeding current liabilities of £31,177 by £2,195 at 31/07/2024. However, compared to the previous year, net current assets declined from £4,792 to £2,195 and net assets dropped by approximately 50%. Provisions for liabilities have increased substantially from £2,079 (credit balance) to £80 (debit), and accruals appeared at £750, suggesting increased contingent liabilities or expenses. The company operates with minimal equity (£1 share capital) and retains limited accumulated reserves. Overall, financial strength is weak but not negative.

3. Cash Flow Assessment:
   Current assets primarily include cash and short-term receivables, sufficient to cover current liabilities. The net current asset position indicates positive working capital, but the reduction from prior years and increased accruals may pressure liquidity. Director loan accounts show a net credit balance of £765 owed by the company to directors, reflecting informal funding arrangements. The company’s small size and limited employee base (increased from 1 to 2) suggest low fixed overheads, which may help maintain liquidity. However, cash flows should be verified for consistency, as the decline in net assets could indicate cash drain or increased costs.

4. Monitoring Points:

• Continued trend in net assets and net current assets to detect further erosion.
• Provisions and accruals movements to assess emerging liabilities or commitments.
• Director loan account balances and any changes in related party transactions.
• Revenue and profitability data (not provided) to evaluate operational performance.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Any changes in ownership or management that could impact governance or financial controls.