BOTMAN PROPERTIES LIMITED

Executive Summary

BOTMAN PROPERTIES LIMITED is exhibiting signs of financial distress with worsening liquidity and negative equity, indicating an urgent need for financial restructuring and improved cash management. Immediate steps to boost current assets, reduce liabilities, and inject capital are crucial to restore financial health and ensure ongoing viability.

BOTMAN PROPERTIES LIMITED - Analysis Report

Company Number: 13989702

Analysis Date: 2025-07-29 18:59 UTC

Financial Health Assessment for BOTMAN PROPERTIES LIMITED (FY ending 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company shows symptoms of financial distress, notably negative net assets (shareholders’ funds) and net current liabilities that have worsened over the last year. These indicators suggest the company is undercapitalized and may struggle to meet short-term obligations without additional funding or restructuring.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	559,771	405,757	Increased investment in long-term assets, possibly property acquisition or improvements.
Current Assets	8,366	60,984	Sharp decline in liquid assets; very limited cash or receivables available to cover short-term debts.
Current Liabilities	203,768	190,100	Short-term debts are substantial and rising, increasing pressure on liquidity.
Net Current Assets (Working Capital)	-195,402	-129,116	Negative and worsening; a critical symptom of liquidity strain, indicating inability to cover short-term liabilities with current assets.
Creditors Due After One Year	393,668	287,959	Long-term debts have increased, putting further pressure on solvency.
Net Assets (Shareholders’ Funds)	-30,194	-12,118	Negative equity means liabilities exceed assets, indicating insolvency on the balance sheet.

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3. Diagnosis

BOTMAN PROPERTIES LIMITED shows clear symptoms of financial distress:

• Liquidity crisis: The company’s current assets have plummeted while current liabilities have increased, resulting in a severely negative working capital position (-£195k). This means the company does not have enough short-term assets to cover its immediate debts, a classic sign of "cash flow illness."

• Solvency concerns: Negative net assets (-£30k) indicate the company owes more than it owns, a worrying sign of balance sheet insolvency. This condition worsened compared to the previous year, highlighting an inability to build shareholder value or retain earnings.

• Leveraging risk: The rise in long-term creditors (+£105k) suggests increased borrowing or deferred payments, which could exacerbate financial strain if not managed carefully.

• No employees: The company has no staff apart from directors, potentially reducing overhead but also implying limited operational activity or reliance on external contractors.

Overall, the company is in a precarious financial condition, potentially reliant on external financing or shareholder support to remain solvent and operational.

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4. Recommendations

To improve the financial wellness of BOTMAN PROPERTIES LIMITED and stabilize its condition, the following specific actions are advised:

1. Improve Liquidity:

   • Increase current assets by accelerating debtor collections, increasing cash reserves, or disposing of non-core assets.
   • Negotiate longer payment terms with creditors to ease short-term cash flow pressures.

2. Address Negative Equity:

   • Consider a capital injection from shareholders or new investors to restore positive net assets.
   • Alternatively, restructure existing debts to reduce liabilities or convert some debt to equity.

3. Cost and Debt Management:

   • Review fixed asset utilization to ensure investments generate sufficient returns or consider asset sales.
   • Control overhead and operational expenses tightly to avoid further deterioration of reserves.

4. Financial Monitoring:

   • Implement regular cash flow forecasting and management reporting to detect financial stress early.
   • Engage with financial or insolvency advisors to explore turnaround options if conditions do not improve.

5. Strategic Review:

   • Assess the business model and revenue streams for sustainability and growth potential, especially given the real estate letting focus (SIC 68209).
   • Explore opportunities to increase rental income or diversify holdings.

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