Company Number: 12835190

Analysis Date: 2025-07-19 12:26 UTC

Financial Health Assessment for Cornholme Property Ltd

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1. Financial Health Score: D

Explanation:
Cornholme Property Ltd currently demonstrates significant financial distress signs, primarily evidenced by persistent net liabilities, negative working capital, and deteriorating net assets. The score "D" indicates below-average financial health with urgent need for remedial action to restore stability.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£79,094 (2023)	Modest revenue generation, slight growth from previous years but limited scale for sustainability.
Fixed Assets	£8,800	Small long-term asset base, reflecting low capital investment or asset holdings.
Current Assets	£6,312	Limited liquid resources to cover short-term obligations.
Current Liabilities	£36,061	High short-term debts significantly exceeding current assets.
Net Current Assets (Working Capital)	-£29,749	Negative working capital—a critical symptom of cash flow strain and inability to meet immediate debts.
Net Assets (Shareholders’ Funds)	-£20,949	Company is technically insolvent, with liabilities exceeding assets by a significant margin.
Share Capital	£2.00	Minimal equity base, indicating limited financial buffer for absorbing losses or shocks.
Employees	1	Very small operation size, possibly limiting operational scope and scalability.

Interpretation of Vital Signs:

• Negative working capital ("symptom of distress") signals liquidity problems — the company may struggle to pay suppliers or creditors on time.
• Persistent net liabilities indicate that the company’s obligations exceed its resources, threatening ongoing viability without external support or restructuring.
• Turnover growth is positive but insufficient to offset accumulated losses or improve the balance sheet meaningfully.
• Minimal share capital means the business has limited equity cushion, increasing vulnerability to financial shocks.

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3. Diagnosis

Cornholme Property Ltd displays classic symptoms of financial stress despite being operational and active. The company’s inability to generate sufficient internal cash flow to cover current liabilities is the primary concern. The negative net current assets and net liabilities position reflect ongoing operational losses or funding gaps.

The business is likely experiencing cash flow constraints that could affect supplier relationships, credit terms, and the ability to invest in growth or asset replacement. The negative equity position is a red flag that the company's net worth is eroded, potentially impacting stakeholder confidence including lenders, suppliers, and investors.

Given the micro-entity status and small scale, the company may have limited access to external financing, increasing the risk of financial distress if current trends continue. The fact that the company is not overdue on filings or returns is a positive sign of compliance discipline.

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4. Recommendations

• Improve Cash Flow Management:
  Conduct a detailed cash flow forecast and implement strict credit control to accelerate receivables and manage payables prudently. Consider negotiating payment terms with creditors to ease short-term liquidity pressure.

• Cost Control and Operational Efficiency:
  Review operating expenses to identify non-essential costs that can be reduced or deferred. Streamline operations to improve profitability margins.

• Capital Injection or Financing:
  Explore options for equity injection from current shareholders or new investors to strengthen the balance sheet. Alternatively, seek short-term financing facilities such as overdrafts or invoice financing to cover working capital deficits.

• Asset Utilisation Review:
  Assess fixed assets for potential disposal of underused or non-essential assets to generate cash and reduce liabilities.

• Strategic Review:
  Evaluate the business model to identify growth opportunities or diversification that could increase revenues sustainably. Consider professional advisory support for turnaround strategy.

• Maintain Compliance and Governance:
  Continue timely filing of statutory accounts and confirmation statements to avoid penalties and maintain credibility with regulatory authorities.

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