Company Number: 13550025

Analysis Date: 2025-07-20 14:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Frontier Estates (Dean) Ltd is a small private limited company engaged in buying and selling its own real estate. The company shows a net liability position with shareholders’ funds deteriorating from -£4,937 in 2023 to -£22,114 in 2024. The current liabilities slightly exceed current assets, resulting in a negative working capital position. However, the company recently sold a significant property asset for £2.8M after the balance sheet date, which should materially improve liquidity. The company benefits from shareholder support and related party financing (over £2.4M owed to group undertakings), indicating reliance on group funds. Approval is conditional on continued shareholder support and monitoring of cash flow post-property sale to ensure timely debt service and creditor payments.

2. Financial Strength:
   The balance sheet reflects a weak financial position with net liabilities of £22,114. Current liabilities slightly exceed current assets (£2.45M vs £2.43M), indicating a working capital deficit. The main asset is property under development valued at £2.42M, which was sold shortly after year-end for £2.8M, providing potential for improved asset base and net assets if proceeds are retained within the company or group. The company is wholly owned by Frontier Estates Limited, which appears to provide financial backing, as evidenced by substantial intercompany liabilities. Overall, the company’s financial strength is currently weak but could improve significantly with the recent asset sale and continued support from its parent.

3. Cash Flow Assessment:
   Cash at bank is minimal (£9,499), and debtors are negligible (£1,434), indicating limited liquid resources to cover short-term obligations. The company has a negative net current asset position (-£22,114), primarily due to high current liabilities (£2.45M), mostly owed to group undertakings. The recent property sale post year-end should release cash inflows to strengthen liquidity and working capital. However, until the sale proceeds are realised and reflected in the accounts, cash flow remains tight. The company’s ability to meet short-term liabilities depends on timely receipt of sale proceeds and ongoing group funding.

4. Monitoring Points:

• Realisation and utilisation of the £2.8M property sale proceeds: confirmation of receipt and application towards liabilities or reinvestment.
• Continued financial support from the parent company to cover working capital deficits and creditor payments.
• Trends in current liabilities, especially amounts owed to group undertakings and trade creditors.
• Cash flow statements and interim management accounts to assess ongoing liquidity and operational cash generation.
• Any changes in property holdings or development pipeline affecting future asset values and turnover.