Company Number: 13917840

Analysis Date: 2025-07-29 18:47 UTC

Financial Health Assessment Report for CRESTPARK ESTATES LTD (as at 31 December 2024)

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1. Financial Health Score: D

Explanation:

The company exhibits significant signs of financial distress. The negative net asset position (shareholders' funds) and persistent working capital deficits indicate it is effectively "running on borrowed lungs," relying heavily on creditor funding to maintain operations. This score reflects a concerning state requiring urgent attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£4,310,000	Stable asset base, primarily in real estate as expected from SIC 68100 activity.
Current Assets	£1,160,003	Low relative to current liabilities, indicating limited short-term liquidity ("cash flow").
Current Liabilities	£3,106,390	High short-term obligations, over 2.5 times current assets, signaling liquidity risk.
Net Current Assets (Working Capital)	-£1,316,931	Negative; company cannot cover short-term debts with current assets — symptom of distress.
Total Assets less Current Liabilities	£2,993,069	Reflects asset base net of immediate debts, but overshadowed by longer-term liabilities.
Long-term Liabilities (Implied)	£3,106,390	Substantial debt beyond 1 year, likely loans secured against property.
Net Assets (Shareholders' Funds)	-£113,321	Negative equity; liabilities exceed assets, indicating insolvency on a balance sheet basis.
Profit & Loss Reserve	Not explicitly stated	Likely negative or negligible, contributing to shareholders' deficit.

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3. Diagnosis: Financial Condition Overview

CRESTPARK ESTATES LTD is a micro-entity engaged in buying and selling its own real estate assets. While it holds significant fixed assets (£4.31m), the company is facing critical symptoms of financial distress:

• Negative Working Capital: The company has £1.16m in current assets but owes £3.11m in current liabilities. This means it lacks the immediate liquidity to meet short-term obligations without refinancing or asset liquidation.

• Negative Net Assets: Shareholders’ funds are negative by £113k, indicating that total liabilities exceed total assets. This is akin to a patient with a dangerously low vital sign—its financial "heart" is weak.

• Heavy Reliance on Debt: Long-term liabilities roughly match the asset base, suggesting the company is heavily leveraged. This debt burden may limit operational flexibility and increase financial risk if property values or market conditions decline.

• No Employees: With no staff recorded, the company likely operates with minimal overhead but also limited revenue-generating operations. Its business model may rely on property transactions rather than ongoing income.

• Recent Incorporation: Incorporated in 2022, the company is still in early stages, which may explain some instability, but the negative equity so soon is a red flag.

These symptoms suggest the company is struggling to maintain a healthy balance between assets and liabilities, with liquidity issues that could impair day-to-day operations or future growth.

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4. Recommendations: Path to Financial Wellness

Just as a patient needs targeted treatment to recover health, CRESTPARK ESTATES LTD should consider the following measures to restore financial vitality:

1. Improve Liquidity Management

   • Seek to increase current assets (cash or receivables) or reduce current liabilities through renegotiation with creditors or extended payment terms.
   • Explore short-term financing options to bridge working capital gaps, but cautiously to avoid over-leverage.

2. Equity Injection or Capital Restructuring

   • Consider additional capital contributions from shareholders or controlling entity (Crestpark Properties Limited) to shore up negative equity and improve net asset position.
   • Alternatively, restructure existing debt to reduce pressure on cash flows.

3. Asset Monetization and Portfolio Review

   • Evaluate the real estate portfolio for underperforming or non-core assets that could be sold to raise cash and reduce debt.
   • Ensure property valuations are current and realistic to avoid overstating fixed assets.

4. Operational Review and Strategic Planning

   • Develop a clear business plan to generate sustainable income streams beyond asset trading if feasible.
   • Monitor industry trends in real estate to anticipate market risks and opportunities.

5. Regular Financial Monitoring

   • Implement rigorous financial reporting and forecasting to detect early signs of distress and respond timely.
   • Engage professional advisory support to navigate restructuring if necessary.

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Medical Analogy Summary

The company’s financial “heartbeat” is weak—negative equity and working capital deficits are symptoms of distress requiring urgent intervention. Without corrective action, CRESTPARK ESTATES LTD risks “financial collapse.” However, with timely capital support (akin to a transfusion), improved liquidity (hydration), and strategic adjustments (therapy), there is potential to restore its financial health.

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