W. NOBLE LIMITED

Credit Opinion: CONDITIONAL

W. Noble Limited is an established private property investment company incorporated in 1958, engaged in letting and operating real estate (SIC 68209) and other accommodation (SIC 55900). The balance sheet shows net assets of £3.79m supported by an investment property carried at £4.32m. However, liquidity is thin: cash of £54k against creditors due within one year of £143k, resulting in net current liabilities of £87k. The latest accounts are filleted, so no income statement is available to verify trading profitability or debt-service capacity from earnings. The company has no visible bank borrowings.

On this basis, any credit facility should be conditional on: - Security over the investment property, supported by an independent valuation (the carrying value is a directors’ open-market valuation) - An appropriate loan-to-value covenant - A debenture or personal guarantees given the thin liquidity position - Receipt of full accounts including a profit and loss account to assess cash generation

Unsecured lending would not be supported by the current liquidity position.

Financial Strength

Balance sheet health is strong on an asset basis but heavily weighted to property valuation: - Net assets: £3.79m (2025), broadly stable versus £3.78m (2024) - Investment property: £4.32m, carried at directors’ valuation - Shareholders’ funds: £3.79m, comprising £100 share capital, £3.14m fair value reserve and £645k retained earnings - Provisions for liabilities: £448k, likely deferred tax on property revaluation - No long-term borrowings disclosed in the filed balance sheet - Equity is dominated by unrealised property revaluation reserves rather than retained trading profits

The company has operated since 1958 and maintains a clean filing record; accounts and confirmation statement are not overdue. Accounts are audit-exempt under the small companies regime.

Cash Flow Assessment

Liquidity is constrained: - Cash at bank: £54k (2025), down from £51k (2024) and significantly lower than £404k in 2022 - Debtors: £3k - Net current liabilities: £87k - Creditors due within one year: £143k, comprising taxation and social security (£96k) and other creditors (£48k) - No employees, so payroll overhead is nil - Business model relies on rental income; no profit and loss account is provided in the filleted accounts, so operating cash flow cannot be verified - The accounts state they are prepared on a going concern basis despite net current liabilities, based on the directors’ review of cashflow forecasts

Debt service would depend entirely on rental receipts and/or property equity, as cash reserves are insufficient to cover even a modest portion of near-term creditors.

Monitoring Points

• Cash at bank trend and ability to cover tax and trade creditors as they fall due
• Receipt of full statutory accounts (including profit and loss) at the next filing to verify rental income and operating profitability
• Independent revaluation of the investment property to support any secured lending
• Movement in creditors, particularly taxation and social security liabilities to HMRC
• Any new borrowing or charges registered at Companies House
• Continued timely filing of accounts and confirmation statements
• Changes to the PSC register or board composition