BORIS PROPERTIES LTD

Executive Summary

BORIS PROPERTIES LTD maintains a stable and solvent financial position typical of a micro-entity in the real estate sector. The company’s assets and equity are steady, with positive working capital indicating good short-term financial health. Focus on strengthening liquidity and managing long-term debt will sustain this positive outlook.

BORIS PROPERTIES LTD - Analysis Report

Company Number: 14196093

Analysis Date: 2025-07-29 17:16 UTC

Financial Health Assessment Report for BORIS PROPERTIES LTD

As at 30 June 2024

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1. Financial Health Score: B

Explanation:
BORIS PROPERTIES LTD shows a stable financial position typical for a micro-entity in the property letting sector. The company has consistent net assets and shareholders' funds, positive net current assets, and no overdue filings. However, the relatively high current liabilities compared to current assets indicate some liquidity caution, preventing an A-grade. Overall, the company is financially sound but should monitor working capital closely.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	254,745	Represents property or long-term assets; stable over 3 years, indicating consistent asset base.
Current Assets	9,579	Includes cash and receivables; modest but increasing, a positive sign for short-term liquidity.
Current Liabilities	1,290	Short-term obligations; relatively low compared to assets, indicating manageable immediate debts.
Net Current Assets	8,289	Positive working capital ("healthy cash flow cushion") suggesting ability to cover short-term debts.
Long-term Liabilities	184,745	Significant long-term debt likely linked to property financing; manageable given asset base.
Net Assets / Equity	78,289	Positive shareholders' funds indicate retained value and solvency.
Employee Count	2	Small team consistent with micro-entity status; manageable overhead.

Note: The company’s accounts are prepared under the micro-entity regime and unaudited, so figures are concise but reliable for high-level assessment.

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3. Diagnosis: Financial Condition and Symptoms

• Asset Stability: The fixed assets remain constant, indicating no recent disposals or acquisitions. This "steady heartbeat" suggests the business is holding its core property assets without stress sales.

• Liquidity Position: The positive net current assets reflect a "healthy cash flow pulse," meaning the company can meet its short-term liabilities without strain. Although current assets are modest, they slightly improved from prior years, which is a good sign.

• Leverage and Solvency: The company carries significant long-term liabilities relative to net assets, typical for property letting businesses that rely on mortgage or loan financing. This "symptom of controlled leverage" is manageable given stable asset values and positive equity.

• Profitability Insight: The accounts do not disclose profit or loss figures, a common limitation for micro-entities. However, the incremental increase in net assets year-on-year suggests the company is not operating at a loss large enough to erode equity.

• Operational Scale: With only two employees, the company’s operational costs are likely low, reducing risk of overhead-induced distress.

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4. Prognosis: Future Financial Outlook

BORIS PROPERTIES LTD appears to be on a stable financial footing with a "steady pulse" of asset maintenance and working capital management. The ongoing positive equity trend and manageable liabilities forecast a positive short- to medium-term outlook, assuming no major market shocks in the real estate sector or unexpected liabilities.

However, the company should remain vigilant on liquidity—especially given the small buffer in current assets—and monitor interest rates or refinancing risks on its long-term debt. Proactive cash flow management will ensure continued financial wellness.

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5. Recommendations

• Enhance Cash Reserves: Aim to increase current assets, particularly cash balances, to provide a stronger liquidity cushion and buffer against unforeseen expenses or market downturns.

• Debt Management Strategy: Review long-term liabilities for refinancing opportunities or early repayments to reduce interest burden and improve solvency ratios.

• Regular Financial Monitoring: Implement quarterly internal reviews of cash flow and liabilities to detect any early "symptoms of distress."

• Profitability Tracking: Even though not mandatory for micro-entities, consider maintaining internal profit and loss tracking to gain better insight into operational health and guide strategic decisions.

• Employee Efficiency: With a small team, ensure roles and responsibilities are optimized to avoid operational bottlenecks or over-dependence on key personnel.

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