ABSOLUTELY PROPERTY LIMITED

Executive Summary

ABSOLUTELY PROPERTY LIMITED shows a stable asset base but faces significant liquidity challenges, with negative working capital indicating difficulty meeting short-term obligations. The company’s financial condition is vulnerable but not critical, requiring urgent attention to cash flow management and potential capital infusion to stabilize its financial health and support future growth.

ABSOLUTELY PROPERTY LIMITED - Analysis Report

Company Number: 14093023

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment: ABSOLUTELY PROPERTY LIMITED
(For the financial year ended 31 May 2024)

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1. Financial Health Score: C

Explanation:
The company shows signs of fragile financial health. While it has a positive net asset position (£5,940), this is minimal relative to the scale of liabilities. The company's current liabilities vastly exceed its current assets, indicating liquidity stress. The small but positive shareholders’ funds and fixed assets growth are encouraging, but the very low working capital and minimal cash equivalents suggest tight operational cash flow. This score reflects a company that is surviving but requires strategic attention to improve its liquidity and capital base.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£222,082	Steady investment in long-term assets, showing asset base growth
Current Assets	£5	Extremely low liquid or short-term assets, potential cash flow risk
Current Liabilities	£216,247	High short-term obligations, posing liquidity challenges
Net Current Assets (Working Capital)	-£216,242	Severe negative working capital, a "symptom of distress" indicating inability to cover short-term debts
Net Assets (Equity)	£5,940	Positive but very low equity buffer to absorb shocks
Shareholders’ Funds	£5,940	Mirrors net assets, small capital base
Employee Count	0	No employees, possibly a holding or asset management entity

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3. Diagnosis:

"Symptoms" Observed:

• The company is asset-heavy with significant fixed assets, likely property-related given the SIC codes (real estate activities and construction). This suggests its business model is capital intensive.
• The almost negligible current assets (£5) versus very high current liabilities (£216k) signals a liquidity "disorder" — the company may struggle to meet immediate obligations without converting fixed assets to cash or borrowing.
• The net current liabilities indicate a working capital deficit, a critical warning sign akin to a patient having a dangerously low blood pressure — the company’s short-term financial "circulation" is impaired.
• However, the positive net assets and increasing fixed assets from £197k to £222k suggest some capital growth and investment, which could be a healthy sign if managed properly.
• No employees suggest minimal operational overhead but also limited business activity, possibly consistent with a property holding or development company in early stages or with outsourced operations.

Overall Diagnosis:
ABSOLUTELY PROPERTY LIMITED is in a vulnerable financial condition. It holds valuable fixed assets but faces a significant liquidity crunch indicated by negative working capital and minimal liquid assets. The company's financial "blood flow" is weak, risking short-term payment defaults unless remedied. Its positive equity is a small cushion but insufficient to absorb shocks or support growth without improving liquidity or capital injection. The company’s financial health resembles that of a patient with a chronic condition needing intervention to prevent deterioration.

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4. Recommendations:

To improve financial wellness, ABSOLUTELY PROPERTY LIMITED should consider the following actions:

• Improve Liquidity:

  • Explore short-term financing options such as overdrafts or loans to cover current liabilities.
  • Accelerate receivables or liquidate non-core assets if possible to boost current assets.

• Working Capital Management:

  • Negotiate longer payment terms with creditors to ease immediate cash flow pressure.
  • Monitor cash flow closely to avoid liquidity crises.

• Equity Infusion:

  • Consider additional capital injection from shareholders to strengthen the equity base and provide a financial buffer.

• Asset Utilization:

  • Review fixed assets to ensure they are productive and contributing to revenue generation; if properties are unoccupied or underutilized, consider leasing or selling.

• Operational Strategy:

  • Since there are no employees, if the company plans to expand, it should budget for operational costs and ensure sufficient working capital is available.

• Regular Financial Monitoring:

  • Maintain close oversight of financial metrics to detect early warning signs of distress and take timely corrective action.

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