CAMELOT PROPERTY GROUP LTD

Executive Summary

Camelot Property Group Ltd is in the start-up phase with limited assets and negative equity, indicating financial fragility. To improve its financial health, the company should focus on capital infusion, cash flow management, and operational ramp-up. Early intervention will be key to avoiding liquidity crises and achieving sustainable growth.

CAMELOT PROPERTY GROUP LTD - Analysis Report

Company Number: 15163989

Analysis Date: 2025-07-20 18:24 UTC

Financial Health Assessment for Camelot Property Group Ltd

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1. Financial Health Score: D

Explanation:
The company is in the early stages of its lifecycle with a short trading history (incorporated September 2023). The current financials reveal a net liability position and negative working capital, which are symptoms of financial distress. Although this is not uncommon for a new start-up, the lack of assets and reliance on director loans indicate vulnerability. Grade D reflects a precarious financial state requiring close monitoring and corrective actions.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,970	Minimal liquid assets (all cash), indicating limited immediate resources
Current Liabilities	2,609	Short-term debts exceed current assets, causing negative net current assets (-639)
Net Current Assets	-639	Negative working capital signals potential liquidity stress
Net Assets (Shareholders' Funds)	-639	Negative equity shows liabilities exceed assets, a "symptom of distress"
Share Capital	1	Nominal equity investment; very low capital base
Directors' Loan	1,999	Majority of liabilities owed to directors, indicating funding dependency
Employees	0	No employees yet, typical for start-up; limited operational scale

The company’s balance sheet is like a patient with low blood pressure and weak pulse—there are insufficient financial resources to sustain operations without external support.

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3. Diagnosis: What Does the Financial Data Reveal?

• Early Stage Company: Incorporated only six months prior to the financial year end, Camelot Property Group Ltd is in the infancy phase, often marked by initial investment and set-up costs without significant revenue.
• Liquidity Concerns: The negative net current assets (-£639) indicate the company’s short-term liabilities exceed its immediate liquid assets (cash), implying a "cash flow weakness" symptom.
• Reliance on Director Funding: The substantial director loan (£1,999) is providing critical funding, which suggests the company is dependent on its key stakeholders for solvency.
• Negative Equity: With net liabilities of £639, the company is technically insolvent on a balance sheet basis, indicating accumulated losses or initial expenses have eroded shareholder funds.
• No Operating Staff: No employees yet, which is consistent with a start-up but suggests the company may still be in a set-up or pre-revenue phase.

In medical terms, the company is a patient in the "incubation phase" of its business lifecycle, showing early symptoms of financial strain but not yet in critical condition. The key risk is whether it can generate operating cash flow or additional funding before liabilities become due.

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4. Prognosis: Future Financial Outlook

• Short-Term Outlook: The immediate concern is strengthening liquidity and building working capital. Without improved cash flow or fresh capital injections, the company risks inability to meet short-term obligations.
• Medium-Term Outlook: Success depends on achieving operational milestones—growing revenues, managing expenses, and reducing reliance on director loans.
• Risk Factors: If the company fails to reverse negative equity or secure funding, it could face financial distress, including potential insolvency.
• Opportunity: As a new company in real estate agencies (SIC 68310), there is potential for growth if managed prudently and if market conditions are favourable.

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5. Recommendations: Specific Actions to Improve Financial Wellness

1. Increase Capital Injection: Consider raising equity capital beyond the nominal £1 to bolster shareholder funds and improve the balance sheet health.
2. Manage and Monitor Cash Flow: Develop a detailed cash flow forecast to anticipate liquidity needs and avoid shortfalls.
3. Reduce Reliance on Director Loans: Formalise any director funding arrangements and plan for repayment or conversion to equity to reduce financial risk.
4. Accelerate Revenue Generation: Prioritise operational setup to start generating income, focusing on client acquisition and service delivery.
5. Cost Control: Maintain strict control over expenses to preserve cash during the early growth phase.
6. Regular Financial Review: Implement monthly financial health checks akin to routine medical check-ups to identify symptoms of distress early and take corrective action.
7. Seek Professional Advice: Engage with financial advisors or accountants specialising in start-ups to optimise financial strategy and compliance.

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Executive Summary

Camelot Property Group Ltd is a newly incorporated real estate agency currently exhibiting early-stage financial symptoms of distress, including negative working capital and reliance on director loans. Immediate action to strengthen liquidity and capital structure is essential to improve financial health and support future growth.