AMAVID PROPERTY MANAGEMENT LTD

Executive Summary

AMAVID PROPERTY MANAGEMENT LTD holds substantial fixed assets but carries high debt, resulting in fragile equity and solvency. Improved liquidity is a positive sign, yet the company should prioritize debt restructuring and equity strengthening to secure its financial health and future stability.

AMAVID PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13011504

Analysis Date: 2025-07-29 19:24 UTC

Financial Health Assessment of AMAVID PROPERTY MANAGEMENT LTD

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1. Financial Health Score: C

Explanation:
AMAVID PROPERTY MANAGEMENT LTD demonstrates some solid asset holdings but also shows signs of financial strain due to significant long-term liabilities exceeding net assets. The company holds valuable fixed assets but struggles with a high level of debt, which results in negative net equity. While operational liquidity has improved, the overall capital structure suggests caution.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£691,252	Stable and substantial asset base, indicating investment in property likely core to business.
Current Assets	£358,428	Significant increase from previous years, showing improved short-term liquidity.
Current Liabilities	£1,076,987	High liabilities due within a year; potential pressure on cash flow.
Net Current Assets	£356,928	Positive working capital, indicating the company can meet short-term obligations.
Total Assets Less Current Liabilities	£1,048,180	Indicates value after covering short-term debts but before long-term liabilities.
Creditors due after one year	£1,076,987	Long-term debt is large and has increased, creating financial leverage risk.
Net Assets / Shareholders Funds	£28,807	Very low positive equity; close to breakeven point, signaling weak capital buffer.
Share Capital	£100	Minimal share capital, typical for micro-entity but limits equity base.

Trend Notes:

• Fixed assets remain steady, indicating no major asset disposals or additions.
• Substantial growth in current assets from ~£59k to ~£358k may reflect improved cash or receivables management.
• Current liabilities have risen sharply, especially long-term creditors, increasing financial risk.
• Net assets have improved slightly but remain low relative to liabilities, indicating fragile solvency.

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3. Diagnosis

AMAVID PROPERTY MANAGEMENT LTD exhibits symptoms of financial distress primarily related to its capital structure. While the company owns significant fixed assets (likely properties related to its real estate management activities), it carries a heavy debt load, with creditors both current and long-term exceeding £1 million. This high leverage places strain on the company’s solvency and could limit its ability to respond to unexpected expenses or economic downturns.

The increase in current assets and net current assets is a positive sign of improved liquidity, suggesting the company has enhanced its short-term cash flow or receivables collection. However, the liabilities due within one year remain substantial, which requires ongoing careful cash flow management.

Net asset value is barely positive at just under £30k, indicating a very thin equity cushion. This means the company’s financial health is vulnerable to fluctuations in asset values, debt restructuring needs, or operational setbacks.

The business is still operating and filing on time, with no signs of overdue accounts or compliance issues, which is encouraging.

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4. Recommendations

To improve financial wellness and strengthen the company’s health:

• Debt Restructuring: Engage with creditors to possibly restructure long-term debt, aiming to reduce interest costs and extend repayment terms to relieve financial pressure.
• Increase Equity Capital: Consider raising additional equity, either through new shareholders or capital injection from existing owners, to build a stronger capital base and improve solvency.
• Improve Cash Flow: Maintain focus on collecting receivables promptly and managing payables strategically to preserve healthy working capital.
• Asset Review: Assess the fixed assets for potential non-core disposals or refinancing opportunities to generate cash or reduce debt.
• Cost Control: Regularly review operational expenses to improve margins and profitability, which will help rebuild reserves.
• Financial Monitoring: Implement monthly financial reporting and cash flow forecasting as a diagnostic tool to catch early signs of distress and proactively manage finances.
• Professional Advice: Consult with financial advisors or turnaround specialists if debt burden becomes unsustainable or if cash flow tightens.

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Medical Analogy Summary

AMAVID PROPERTY MANAGEMENT LTD shows a stable skeletal structure (fixed assets) but is burdened by a heavy debt load akin to excess weight on the heart (high liabilities). The recent improvement in blood flow (liquidity) is a good sign but the company’s overall immune system (equity) remains weak and vulnerable. Without intervention—such as debt relief and strengthened equity—the company risks financial fatigue or failure under stress.

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