1 PROPERTY SOLUTIONS GROUP LTD

Executive Summary

1 Property Solutions Group Ltd is a very young, micro-sized company facing significant liquidity challenges, highlighted by a negative working capital position and reliance on director loans. While operational and regulatory compliance is maintained, the company’s financial health is fragile with limited cash reserves and minimal equity. Immediate focus on cash flow management, debt restructuring, and operational efficiency is essential to stabilize and improve financial wellness.

1 PROPERTY SOLUTIONS GROUP LTD - Analysis Report

Company Number: 14572987

Analysis Date: 2025-07-29 17:51 UTC

Financial Health Assessment for 1 PROPERTY SOLUTIONS GROUP LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant signs of financial distress with negative working capital and minimal net assets. While it remains active and compliant with filing deadlines, the current financial metrics suggest difficulties in meeting short-term obligations and sustaining operations without intervention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	8,568	Low level of short-term assets; primarily cash and debtors
Cash Balance	5,176	Limited cash on hand, indicating tight liquidity
Current Liabilities	38,247	High immediate liabilities compared to current assets
Net Current Assets	-29,679	Negative working capital, a critical symptom of cash flow distress
Fixed Assets	34,425	Significant investment in tangible assets (motor vehicles and computer equipment), but low liquidity
Net Assets (Equity)	1,619	Very low net assets relative to liabilities; minimal shareholder equity cushion
Share Capital	2	Nominal share capital; indicates a very small equity base
Loans from Directors	3,125 (Total)	Debt owed to directors, a possible sign of reliance on insider financing
Profit and Loss Reserve	1,617	Retained earnings nearly equal to net assets, but small in absolute terms
Number of Employees	1	Micro-business scale, limited operational capacity

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3. Diagnosis: Financial Condition

Overall Business Health:
This company is in its infancy (incorporated 2023) and operates in a capital-intensive segment of the construction industry (SIC 43290). The financial "vital signs" reveal serious liquidity challenges: its current liabilities overwhelmingly exceed current assets, resulting in a negative working capital of nearly £30k. This is akin to a patient having dangerously low blood pressure—indicating the company struggles to cover short-term debts with its liquid resources.

Its fixed assets, primarily motor vehicles, represent a substantial investment but are illiquid and cannot quickly be converted to cash to relieve immediate financial pressure. The presence of loans from directors suggests the company is relying on related-party funding to keep operations afloat, which can be a double-edged sword: it provides critical support but also signals external financing difficulties.

The minimal shareholder equity and capital base provide little of a financial safety net or buffer against operating losses or unexpected costs. The company’s micro scale (one employee) limits operational flexibility, and with frequent director changes, governance stability may be a concern.

Symptoms of Distress:

• Negative working capital (net current liabilities) is a classic symptom of cash flow strain.
• Low cash reserves relative to liabilities imply potential difficulties in meeting immediate obligations.
• Reliance on director loans suggests external financing is either unavailable or insufficient.
• Minimal equity limits capacity to absorb losses or attract further investment.
• Short operational history means limited track record to assure creditors or investors.

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4. Recommendations for Financial Wellness Improvement

1. Improve Liquidity Management:

   • Prioritize conversion of debtors to cash faster (tighten credit control).
   • Review and negotiate longer payment terms with suppliers to reduce current liabilities.
   • Avoid non-essential expenditure to conserve cash.

2. Refinance or Restructure Debt:

   • Explore options for external financing to reduce reliance on director loans and spread risk.
   • Consider renegotiating director loans for longer-term repayment schedules to relieve short-term pressure.

3. Asset Utilization and Disposal:

   • Assess whether all fixed assets are essential; selling non-critical assets could improve cash position.
   • Maintain assets in good condition to preserve value and operational capacity.

4. Governance and Stability:

   • Ensure stable and consistent leadership to improve strategic decision-making.
   • Engage with a financial advisor or accountant to monitor cash flow closely and plan budgets.

5. Growth and Revenue Focus:

   • Accelerate contract completion and invoicing cycles to increase turnover and cash inflow.
   • Explore additional revenue streams or partnerships within the construction installation sector.

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