Company Number: 13587737

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment for Chrysos Properties Limited

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1. Financial Health Score: D

Explanation:
The company exhibits clear signs of financial distress with persistent negative net assets (shareholders’ funds) and significant net current liabilities. These “symptoms” indicate a weak financial condition akin to a patient with chronic illness that requires urgent care. While the business is still active and filing timely accounts, the deteriorating equity position and strained liquidity highlight vulnerability.

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2. Key Vital Signs (Core Financial Metrics):

Metric	2024 Value	Interpretation
Net Assets (Shareholders’ Funds)	£-7,885 (negative)	Indicates the company owes more than it owns; a symptom of financial distress. Persistent negative equity over years is a critical warning sign.
Fixed Assets	£234,857	An increase from prior years; assets mainly in real estate (letting business). Good foundation but may be illiquid.
Current Assets	£347	Very low current assets, mostly cash or equivalents, showing weak liquidity “pulse”.
Current Liabilities	£140,084	High short-term obligations compared to current assets, indicating potential cash flow stress and working capital deficiency.
Net Current Assets (Working Capital)	£-139,737 (negative)	Severe working capital deficit; a “symptom” of cash flow problems and short-term financial strain.
Total Assets Less Current Liabilities	£95,120	Positive but overshadowed by long-term liabilities.
Long-term Liabilities	£103,005	High non-current debt, possibly mortgage or loans secured against property assets.

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3. Diagnosis: Overall Financial Condition

Chrysos Properties Limited is currently in a fragile financial state. The company operates in the real estate letting sector but shows a troubling pattern of negative net assets over multiple years, now at £-7,885. This means that the liabilities of the company exceed its assets, putting it in a state of “financial insolvency” on paper, though not yet in liquidation.

The liquidity crisis is evident from the very low current assets (£347) against substantial current liabilities (£140,084), yielding a dangerously negative working capital of nearly £140k. This imbalance signals “symptoms of distress” such as difficulty meeting short-term obligations and possible reliance on creditor leniency or refinancing.

Fixed assets have increased, indicating investment or acquisition of property, which is positive if these assets generate rental income. However, the illiquid nature of property means the company may struggle to convert assets quickly into cash to cover debts.

Overall, Chrysos Properties is akin to a patient with a compromised cardiovascular system: the core asset base is present (heart muscle), but the blood flow (liquidity) is poor, threatening system-wide failure if not addressed.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management:
  The company should focus on boosting its current assets (cash and equivalents). This can be achieved by accelerating rent collection, negotiating extended payment terms with creditors, or injecting additional working capital from shareholders or external investors.

• Debt Restructuring:
  Given the high current and long-term liabilities, Chrysos Properties should engage with lenders to restructure debts. Options include extending loan maturities, reducing interest rates, or converting short-term debts into longer-term obligations to ease cash flow pressure.

• Asset Utilization Review:
  Evaluate the fixed assets portfolio to ensure properties are generating sufficient rental income. Consider selling non-core or underperforming assets to generate cash and reduce liabilities.

• Cost Control and Operational Efficiency:
  Although the company employs only one person, scrutinize all expenses to minimize cash outflows and enhance profitability.

• Equity Injection:
  An infusion of capital from owners or new investors is critical to restore positive net assets and strengthen the balance sheet.

• Regular Financial Monitoring:
  Implement monthly financial reviews to monitor cash flow, debts, and asset performance, catching “early symptoms” before they escalate.

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