C&D TAYLOR PROPERTIES LTD

Executive Summary

C&D Taylor Properties Ltd faces financial challenges characterized by negative net assets and liquidity stress, indicating an overall fragile financial condition. The company’s fixed assets remain stable, but the imbalance between liabilities and assets requires urgent corrective actions including capital injection and debt restructuring. Immediate financial monitoring and professional advice are recommended to improve viability and prevent insolvency risk.

C&D TAYLOR PROPERTIES LTD - Analysis Report

Company Number: 12926564

Analysis Date: 2025-07-29 15:51 UTC

Financial Health Assessment Report for C&D Taylor Properties Ltd

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress, primarily due to negative net asset value in the latest year and a working capital deficit. While it holds valuable fixed assets (property), the balance sheet reflects a fragile equity position with liabilities exceeding assets. The cash flow and liquidity metrics suggest strain, warranting attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 (FY end 31 Oct 2023)	Interpretation
Fixed Assets	£151,000	Stable property assets, core to business value
Current Assets	£35,693	Positive, but relatively small compared to liabilities
Current Liabilities	£117,190	High short-term obligations
Net Current Assets (Working Capital)	-£81,497 (Current Assets - Current Liabilities)	Negative working capital, indicates liquidity stress
Total Assets Less Current Liabilities	£115,307	Reflects fixed assets minus immediate liabilities
Creditors (Due after 1 year)	£117,190	Significant long-term debt burden
Net Assets (Shareholders' Funds)	-£1,883	Negative equity indicates insolvency risk
Share Capital	£2.00	Minimal paid-in capital

Interpretation of Vital Signs:

• Negative Net Assets: The company’s liabilities exceed its assets by £1,883, a key symptom of financial distress often referred to as “balance sheet insolvency.” This means if the company were to liquidate today, it might not cover all its debts.
• Negative Working Capital: Net current assets are negative (current liabilities far exceed current assets), indicating potential short-term liquidity issues—difficulty in meeting immediate financial obligations.
• Fixed Asset Stability: The company’s fixed assets (property) are stable and have even seen slight appreciation (£1,000 revaluation). This is a positive core asset but is illiquid.
• Debt Load: Long-term creditors are substantial relative to assets, creating a heavy debt servicing burden.
• Minimal Share Capital: The nominal share capital of £2 indicates limited equity buffer.

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3. Diagnosis

C&D Taylor Properties Ltd exhibits classic symptoms of financial strain:

• Balance Sheet Weakness: Negative net assets indicate that the company’s liabilities surpass its assets, a red flag signaling potential insolvency. This is the most critical symptom, suggesting that the business is undercapitalized or has incurred losses eroding its equity.
• Liquidity Stress: Negative working capital signals that the company may struggle to meet short-term debts as they fall due, potentially causing operational disruption.
• Asset Reliance: The company is heavily reliant on fixed property assets, which are stable but not easily liquidated without loss or delay.
• No Operating Employees: The company reports zero employees, suggesting a lean operation or possibly a holding/asset management company with low operational overhead.
• No Audit Requirement: As a micro-entity, the company benefits from simplified reporting, but this can mask some operational nuances.

Overall, the company appears to be in a fragile financial state, surviving primarily on its fixed assets with limited liquidity and negative equity. This condition requires careful management to prevent further deterioration.

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4. Recommendations

To improve financial wellness, the company should consider the following actions akin to medical treatment interventions for a patient showing signs of distress:

• Capital Injection: Seek new equity investment or shareholder loans to restore positive net assets and rebuild financial resilience.
• Debt Restructuring: Negotiate with creditors to restructure or refinance long-term debt, easing immediate cash flow pressures and reducing interest burden.
• Improve Liquidity: Enhance cash flow management—accelerate receivables, control payables, and possibly liquidate non-core assets to bolster working capital.
• Cost Control: Maintain minimal operational costs and overheads consistent with company size and business model.
• Regular Monitoring: Implement monthly financial reviews to track liquidity and solvency indicators closely; early detection of worsening symptoms allows timely intervention.
• Engage Professional Advice: Consider consultation with insolvency practitioners or financial advisors to explore options such as company voluntary arrangements or refinancing if needed.

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Medical Analogy Summary

C&D Taylor Properties Ltd is currently showing symptoms akin to a patient with weakened vital signs—negative equity (‘heart weakness’) and liquidity issues (‘poor blood flow’). Its core asset (property) is like a vital organ functioning well but unable alone to sustain healthy operations. Without prompt treatment—capital infusion and debt relief—the prognosis risks worsening financial health.

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