CONNECTED PROPERTY SERVICES LTD

Executive Summary

Connected Property Services Ltd shows financial deterioration with negative equity and significant working capital deficits. The company’s liquidity position is weak, with current liabilities far exceeding current assets, raising concerns about its ability to meet short-term obligations. Given the early stage of the business and lack of profitability evidence, credit facilities are not advisable at this time without substantial improvement in financial health.

CONNECTED PROPERTY SERVICES LTD - Analysis Report

Company Number: 13969940

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: DECLINE
   Connected Property Services Ltd exhibits a weak financial profile with net liabilities of £270 as of the latest accounts (31 March 2024) and a significant deterioration in net current assets to negative £7,989. The company’s current liabilities have more than doubled year-on-year, indicating potential liquidity stress. Despite modest fixed asset additions, operational cash generation appears insufficient to cover short-term obligations. The company is still in its early years (incorporated March 2022) and is not yet showing signs of stable financial footing or growth sufficient to support external credit.

2. Financial Strength:

• The balance sheet shows net liabilities, moving from net assets of £501 in 2023 to net liabilities of £270 in 2024.
• Current liabilities increased substantially from £3,653 to £8,849, while current assets declined sharply from £2,657 to £860.
• The fixed assets increased due to additions (£7,435), but this has not translated into improved liquidity or profitability.
• Shareholders’ funds are negative (£-370), reflecting accumulated losses and weak equity buffer.
• The company operates with a very small capital base (£100 share capital), increasing vulnerability to financial shocks.

3. Cash Flow Assessment:

• Cash at bank improved slightly to £740 but remains low relative to current liabilities of £8,849, indicating a cash shortfall to meet immediate obligations.
• Debtors decreased significantly from £2,599 to £120, raising concerns about receivables collection or reduced sales.
• Net current liabilities of nearly £8,000 imply working capital deficits, signaling reliance on external funding or delaying payments.
• No audit was performed, and profit and loss details are not provided, limiting full cash flow visibility. However, the available data suggest cash flow pressures.

4. Monitoring Points:

• Track the company’s ability to improve net current assets and build positive working capital.
• Monitor cash balances and debtor collection efficiency to ensure liquidity.
• Watch for trends in increasing creditors and any indication of supplier payment delays or defaults.
• Review subsequent filings for profit and loss data to assess operational profitability and cash generation.
• Evaluate management actions to strengthen equity and reduce reliance on short-term debt.