EXUMA PROPERTY MANAGEMENT LIMITED

Executive Summary

EXUMA PROPERTY MANAGEMENT LIMITED exhibits a solid asset base but faces liquidity challenges due to negative working capital and high leverage with limited equity. The company is in its early stages and must focus on improving cash flow and strengthening its equity base to ensure long-term financial health. Proactive management of debt and operational profitability will be critical to stabilizing its financial condition.

EXUMA PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13952640

Analysis Date: 2025-07-20 14:58 UTC

Financial Health Assessment for EXUMA PROPERTY MANAGEMENT LIMITED

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1. Financial Health Score: C

Explanation:
The company shows moderate financial stability with tangible fixed assets well above current liabilities, but it also exhibits some liquidity strain as current liabilities exceed current assets, leading to negative working capital. Net assets are positive but very modest, indicating a thin equity buffer. The company is early in its lifecycle (incorporated in 2022), which partly explains limited retained earnings and net assets. This score suggests the company is managing but must carefully monitor liquidity and leverage.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash at Bank	£5,884	Low cash reserves – limited immediate liquidity ("healthy cash flow" is weak)
Current Assets	£5,884 (cash only)	No other current assets reported; total current assets equal cash
Current Liabilities	£38,569	Short-term debts exceed cash significantly, causing a liquidity "symptom of distress"
Net Current Assets (Working Capital)	-£32,685	Negative working capital indicates potential short-term cash flow issues
Fixed Assets (Tangible)	£125,892	Strong asset base in property (land and buildings) – provides security and collateral
Long-term Liabilities	£90,000 (bank loans)	Significant debt burden relative to net assets; a leverage "red flag"
Net Assets (Equity)	£3,207	Very low equity cushion; indicates thin capitalisation
Shareholders’ Funds	£3,207	Matches net assets; a small equity base
Employees	2	Small workforce consistent with micro/small company profile

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3. Diagnosis

• Liquidity Concerns: The company’s current liabilities considerably exceed its current assets, reflecting a strain on short-term liquidity. This "cash flow symptom" could impair the company’s ability to meet immediate obligations without additional financing or asset liquidation.
• Asset Strength: The business holds significant tangible fixed assets (land and buildings) valued at approximately £125,892. These assets provide a strong foundation and potential security for debt but are not liquid.
• Leverage and Solvency: The company has bank loans amounting to £90,000, which is a substantial liability compared to its equity base (£3,207). This high level of gearing means the company is reliant on its earnings and asset values to service its debt. The thin equity "immune system" limits resilience to shocks.
• Early Stage: Incorporated in 2022, the company is in its infancy and may be in a capital-building phase. The limited profit and loss reserves (£3,205) reflect early stage operations rather than chronic underperformance.
• Profitability Data Absence: The absence of detailed profit and loss figures limits assessment of operational profitability and cash flow generation capacity, which are critical for long-term sustainability.

Overall, the company shows "symptoms" of early-stage high leverage and liquidity challenge but benefits from a solid asset base.

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4. Recommendations

1. Improve Liquidity Management:

   • Enhance cash flow forecasting and management to address negative working capital.
   • Negotiate longer payment terms with creditors or arrange short-term financing to alleviate immediate cash pressure.

2. Strengthen Equity Position:

   • Consider capital injection by shareholders or reinvestment of profits to improve equity buffer and reduce financial risk.
   • Monitor debt servicing closely to avoid insolvency risk.

3. Asset Utilisation:

   • Explore opportunities to monetize or leverage fixed assets to improve liquidity, such as sale and leaseback arrangements if appropriate.

4. Operational Efficiency and Profitability:

   • Develop detailed profit and loss statements to evaluate operational health and identify cost-saving or revenue-enhancing opportunities.

5. Financial Monitoring:

   • Regularly review key financial metrics (working capital, cash flow, debt levels) to detect early signs of distress.
   • Engage with financial advisors to plan debt restructuring if needed.

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