ARBONN PROPERTIES LTD

Executive Summary

ARBONN PROPERTIES LTD maintains a stable fixed asset base but faces significant liquidity challenges due to negative working capital and limited current assets. While the company is compliant and solvent, it is operating with minimal equity and high short-term liabilities, indicating vulnerability. Proactive steps to improve liquidity and manage debt are essential to ensure sustained financial health.

ARBONN PROPERTIES LTD - Analysis Report

Company Number: 13542802

Analysis Date: 2025-07-29 20:08 UTC

Financial Health Assessment for ARBONN PROPERTIES LTD (as of 31 August 2024)

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1. Financial Health Score: C

Explanation:
The company demonstrates stable fixed asset holding but shows persistent negative working capital (net current assets) and very low net equity, indicating some financial strain. While not in immediate distress, the "symptoms" suggest liquidity challenges and limited buffer to absorb shocks.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£452,855	Stable asset base, likely property-related, consistent over 4 years—this is the company’s core strength.
Current Assets	£725	Extremely low liquid assets; insufficient to cover short-term liabilities.
Current Liabilities	£259,026	High short-term debts; significantly exceed current assets, indicating liquidity risk.
Net Current Assets (Working Capital)	-£255,870	Negative working capital; a "symptom of distress" suggesting potential cash flow problems.
Total Assets less Current Liabilities	£196,985	Positive, reflecting fixed assets coverage but offset by current liabilities.
Creditors > 1 year (Long-term Liabilities)	£176,995	Significant long-term debt, reduces net asset value and financial flexibility.
Net Assets / Shareholders Funds	£19,010	Very low equity base, though increasing from prior years, indicating minimal retained earnings.
Employee Count	2	Very small scale, consistent with micro-entity classification.

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3. Diagnosis: What the Financial Data Reveals

ARBONN PROPERTIES LTD is a micro-entity primarily engaged in real estate ownership and trading. The "vital signs" show a company with a steady fixed asset base (likely real estate investment) but a chronic liquidity problem. The dangerously low current assets compared to current liabilities reflect a "weak pulse" in short-term financial health, raising concerns about the company’s ability to meet immediate obligations without refinancing or asset liquidation.

The net assets are positive but minimal, indicating that after settling debts, the equity left for shareholders is quite small. The company carries a sizable long-term debt burden relative to its asset base, which restricts financial flexibility.

Despite these symptoms, there is no indication of insolvency or overdue filings. The directors have maintained compliance, and the company remains active. However, the company is operating with a thin margin for error, and the current financial structure could be vulnerable to market downturns or unexpected expenses.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Liquidity: Consider restructuring short-term liabilities or negotiating longer repayment terms to reduce pressure on immediate cash resources.
• Increase Current Assets: Build cash reserves or convert some fixed assets to liquid assets if feasible to provide a healthier cash flow "heartbeat."
• Debt Management: Explore refinancing or reducing long-term liabilities to improve net asset position and reduce financial risk.
• Profitability Focus: Although P&L details are not provided, increasing retained earnings through enhanced profitability will strengthen shareholder funds and provide a buffer against future shocks.
• Regular Monitoring: Closely monitor working capital ratios and cash flow forecasts to detect early signs of distress and take preemptive actions.
• Consider External Advice: Engage financial advisors or accountants to explore potential tax efficiencies and financial restructuring options.

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