CONATY RESIDENTIAL LTD

Executive Summary

CONATY RESIDENTIAL LTD is in an early startup phase showing financial stress with negative net assets and significant short-term liabilities. The company must urgently improve liquidity and accelerate revenue generation to stabilize its financial health and avoid deeper distress.

CONATY RESIDENTIAL LTD - Analysis Report

Company Number: 14934874

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for CONATY RESIDENTIAL LTD

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1. Financial Health Score: D

Explanation:
The company currently shows significant financial distress indicated by negative net assets and working capital. While the company is active and newly incorporated, the imbalance between its liabilities and assets is a critical symptom requiring urgent attention. This score reflects a concerning financial condition but not immediate insolvency.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	99,093	Investment in long-term assets, a positive sign
Current Assets	183	Very low liquid assets available
Current Liabilities	128,130	High short-term debts, potential liquidity risk
Net Current Assets (Working Capital)	(127,947)	Negative working capital indicates cash flow strain
Total Assets Less Current Liabilities	(28,854)	Overall assets insufficient to cover short-term debts
Net Assets / Shareholders’ Funds	(29,229)	Negative equity indicating an overall financial deficit

• Working Capital: The company’s current liabilities exceed current assets by a large margin. This “symptom of distress” suggests difficulty in meeting short-term obligations.
• Negative Net Assets: The company’s liabilities outweigh its total assets, signifying a balance sheet insolvency warning sign.
• No Employees: The company has no staff, which reduces fixed operating expenses but may also indicate early startup phase or limited business activity so far.
• Micro-entity Status: The company benefits from simplified reporting but this also means less comprehensive audited assurance.

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3. Diagnosis

CONATY RESIDENTIAL LTD is in the early stages of its life cycle, having been incorporated in mid-2023 and filing first accounts by mid-2024. The financial “vital signs” show serious cash flow and solvency challenges. The large current liabilities compared to very minimal current assets imply the company is currently under liquidity stress and may struggle to pay short-term debts without additional funding or asset sales.

Negative net assets indicate that the company’s accumulated losses exceed its initial capital and retained earnings, a critical “symptom” of financial distress. However, the presence of fixed assets worth nearly £100k suggests some foundational investments have been made, possibly in real estate or related equipment given the SIC classification (management of real estate on a fee or contract basis).

The business appears to be in a startup or early development phase, with limited operational history and no employees, which could explain the current imbalance as initial expenses or investments have yet to translate into revenue.

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4. Recommendations

To improve financial wellness and stabilize the company’s financial health, consider the following actions:

• Improve Liquidity: Seek immediate measures to increase current assets, such as securing short-term financing or injecting additional capital. Maintaining a “healthy cash flow” is essential to meet current liabilities.
• Review and Manage Liabilities: Negotiate with creditors to extend payment terms or reduce liabilities where possible to relieve short-term pressure.
• Revenue Generation: Accelerate business activities to generate income. As a real estate management company, focus on securing contracts that generate fees and commissions.
• Cost Control: Maintain low fixed costs given current lack of employees and scale operations cautiously until cash flow improves.
• Financial Monitoring: Implement regular financial reviews to monitor cash flow and solvency metrics, identifying early warning signs (“symptoms”) of distress.
• Seek Professional Advice: Engage advisors for restructuring, funding options, or strategic planning to navigate the current deficit and build a sustainable business model.

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Executive Summary

CONATY RESIDENTIAL LTD, a newly formed company in real estate management, currently exhibits financial distress with negative net assets and working capital, signaling liquidity and solvency challenges. Immediate focus on improving cash flow, managing liabilities, and generating revenue is crucial to reversing this unhealthy financial condition and ensuring long-term viability.