CROWN URBAN LIMITED

Executive Summary

CROWN URBAN LIMITED shows a solvent financial position with positive net current assets and equity but exhibits symptoms of liquidity stress due to minimal cash reserves and high debtor balances. As a newly formed property trading company, its financial health is at an early development stage, requiring careful cash flow management and operational ramp-up. Addressing liquidity and revenue generation will be critical to achieving sustainable financial wellness.

CROWN URBAN LIMITED - Analysis Report

Company Number: 14460738

Analysis Date: 2025-07-29 17:43 UTC

Financial Health Assessment of CROWN URBAN LIMITED

---

1. Financial Health Score: C+

Explanation:
Given the company's very recent incorporation (November 2022) and its first financial statements filed for the period ending November 2023, the financial data is limited. The company shows a positive working capital position and positive shareholders' funds, which are good "vital signs" for a young business. However, the extremely low cash balance (£2) and the high proportion of debtors relative to cash highlight potential liquidity concerns. The lack of revenue and profit data (Income Statement not filed as exempt) also limits a full assessment. Overall, the company is in a delicate early stage of financial health, meriting a cautious but hopeful score.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£30,242	Mostly composed of debtors (£30,240), indicating money owed to the company.
Cash	£2	Very low cash on hand — a "symptom of distress" in liquidity management.
Current Liabilities	£13,522	Amounts due within one year, mainly tax and other creditors (£3,922 + £9,600).
Net Current Assets	£16,720	Positive working capital — the company can cover short-term debts with current assets.
Shareholders’ Funds	£16,720	Net assets equal to working capital since no fixed assets; shows positive equity base.
Employee Count	0	No employees reported, indicating very lean operations or early stage development.
Turnover / Profit	Not reported	Income Statement not filed; no data on revenue or profitability, limiting assessment.
Company Age	~1 year	Early stage — financials are initial and may not yet reflect normal trading activity.

---

3. Diagnosis

• Liquidity: The company has a dangerously low cash reserve (£2), which is a key "vital sign" indicating poor immediate liquidity. The bulk of current assets is in debtors, which may or may not be collectible promptly. This setup can cause cash flow problems if debtor payments are delayed.
• Solvency: Positive net current assets and shareholders' funds show the company is solvent at this early stage, with assets exceeding liabilities by a factor of about 1.2. There are no long-term liabilities reported.
• Operational Activity: Lack of employees and no income statement disclosure suggest the company is either dormant operationally or in a pre-revenue phase. This is consistent with a property trading business possibly holding assets for future sale.
• Control & Governance: The company has multiple directors appointed recently, and a significant shareholder with 75-100% control, indicating centralized decision-making. The presence of a corporate shareholder (White Rock Acquisition Ltd) controlling majority shares might provide financial backing.
• Financial Reporting: The exemption from audit and small company reporting framework is appropriate for the company size but limits detailed external scrutiny.

---

4. Recommendations

• Improve Cash Management: Establish a robust cash flow management process. Seek to convert debtors into cash more quickly to ensure "healthy cash flow" and meet short-term obligations without strain.
• Monitor Debtor Quality: Review the collectability of the £30,240 debtor balance closely. If these are inter-company or related-party balances, formalize repayment plans.
• Build Revenue Streams: If the company is not yet trading actively, accelerate efforts to generate revenue or realise property sales to improve financial vitality.
• Plan for Working Capital Needs: The current net current assets cushion is modest. Plan for potential capital injections or credit facilities to avoid liquidity crises.
• Maintain Regulatory Compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Governance Oversight: With concentrated ownership, maintain transparent governance practices to mitigate risk and prepare for future growth phases.

---