BLISS PROPERTY RENTALS LIMITED

Executive Summary

BLISS PROPERTY RENTALS LIMITED possesses a solid asset base with improving equity but faces moderate liquidity constraints due to low current assets and significant long-term debt. The company’s financial health is stable but would benefit from enhanced cash flow management and increased profitability transparency to support sustained growth and resilience.

BLISS PROPERTY RENTALS LIMITED - Analysis Report

Company Number: 12748496

Analysis Date: 2025-07-20 12:16 UTC

Financial Health Assessment of BLISS PROPERTY RENTALS LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable financial position with a solid asset base in property but shows signs of moderate liquidity pressure due to high long-term liabilities. The equity position is positive and improving, but the relatively low current assets compared to liabilities warrant cautious monitoring.

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2. Key Vital Signs:

Metric	2024 Value (£)	Interpretation
Fixed Assets	296,791	Strong asset base primarily in freehold properties, indicating stable capital investment.
Current Assets	5,116	Low short-term liquid assets—could restrict ability to cover immediate expenses without borrowing.
Current Liabilities	1,255	Very low current liabilities, indicating manageable short-term obligations.
Net Current Assets	3,861	Positive working capital suggests short-term liquidity is adequate but tight.
Long-term Creditors	291,884	Significant long-term debt, typical for property rental businesses with mortgages or loans.
Net Assets / Shareholders’ Funds	8,361	Equity has increased from previous years, a positive sign of accumulating retained earnings.
Profit & Loss Reserve	Not explicitly stated, but net assets increased	Indicates retained profits supporting the equity base.
Turnover & Profitability	Not disclosed	Unable to assess revenue or profit margins due to lack of turnover data in filed accounts.

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3. Diagnosis: Financial "Health" Overview

• The company’s balance sheet shows a "healthy skeleton" formed by fixed assets in real estate worth approximately £297k, which have remained stable over recent years. This is akin to a strong backbone supporting the business.
• Current assets are minimal (£5,116), but current liabilities are even lower (£1,255), resulting in a positive working capital "pulse" with £3,861 net current assets. This indicates the company can cover immediate obligations but with limited buffer.
• The long-term debt "burden" is substantial at nearly £292k, representing mortgages or loans likely secured against the properties. This is typical in property rental businesses but requires careful servicing.
• Net assets have increased from £3,013 in 2023 to £8,361 in 2024, showing an improving equity "immune system" that strengthens the company’s net worth.
• The company benefits from directors’ ongoing support, which is explicitly noted as critical for ongoing operations (a vital sign of going concern).
• Absence of audit and detailed profit & loss data limits insight into operational cash flow and profitability trends — “symptoms” of financial performance are less visible.
• The company employs two directors who also appear to be owners, suggesting closely held control and potentially flexible strategic decisions.

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4. Recommendations for Financial Wellness Improvement

• Enhance liquidity management: Explore ways to increase current assets (cash or receivables) to build a larger liquidity cushion. This could be through timely rent collection or short-term investments.
• Monitor long-term debt servicing: Ensure that mortgage or loan repayments are sustainable and aligned with rental income. Consider refinancing options if interest rates or repayment terms become unfavorable.
• Increase transparency on profitability: Even as a micro-entity, maintaining internal profit & loss tracking can help diagnose operational efficiency and inform budgeting or expansion decisions.
• Build reserves: Aim to retain more earnings within the business to strengthen the equity base, reducing reliance on external financing.
• Maintain director support: Given dependence on director backing, formalise support arrangements where possible to reassure stakeholders and lenders.
• Plan for future growth cautiously: With stable fixed assets, consider measured expansion or diversification to improve revenue streams, but avoid over-leveraging.
• Regular financial reviews: Schedule periodic financial health check-ups to catch early signs of distress such as deteriorating liquidity or increasing liabilities.

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Medical Analogy Summary

BLISS PROPERTY RENTALS LIMITED has a strong structural framework (robust fixed assets) akin to a sturdy skeleton. The circulatory system (working capital) is functioning but somewhat restricted, indicating the company can meet short-term demands but with limited excess. The respiratory system (long-term debt) carries a significant load but is being managed without acute distress. Overall, the business shows signs of financial robustness with room for strengthening its liquidity and operational transparency to ensure long-term vitality.

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