FIREFLY PROPERTY LTD

Executive Summary

Firefly Property Ltd exhibits signs of financial strain, reflected in a steep decline in liquidity and net assets over the past year. While still solvent, the company's diminished financial reserves call for immediate attention to cash flow management and capital strengthening. Implementing targeted cost controls and seeking professional financial guidance will be critical steps towards restoring financial health and ensuring sustainable operations.

FIREFLY PROPERTY LTD - Analysis Report

Company Number: 13155978

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment of Firefly Property Ltd

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1. Financial Health Score: C

Explanation: The company’s financial health shows signs of moderate distress. While it remains solvent with positive net assets and working capital, key indicators have deteriorated significantly over the past year. The sharp decline in current assets and net assets suggests liquidity tightening and potential cash flow challenges. The score reflects caution but not critical failure.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£2,252	Declined sharply from £5,739 in 2023, indicating reduced liquid resources.
Current Liabilities	£1,567	Slightly decreased but remains significant; company must meet these short-term obligations.
Net Current Assets (Working Capital)	£685	Positive but reduced by 80% from £3,339 in 2023, signaling constrained operational liquidity.
Net Assets (Shareholders’ Funds)	£685	Decreased from £2,980 in 2023, indicating erosion of equity base and retained earnings.
Share Capital	£1.00	Minimal paid-in capital; company relies heavily on retained earnings and reserves.
Average Number of Employees	1	Micro-entity with very limited staff, indicating small scale of operations.

Interpretation:
The company’s "vital signs" show symptoms of financial stress — a marked decline in cash and short-term assets (a "weak pulse" in liquidity terms) and shrinking net worth ("diminished reserves"). Although still solvent, the financial buffer that protects against shocks has thinned considerably.

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3. Diagnosis: Financial Condition

Firefly Property Ltd operates within the micro-entity framework, engaged in real estate management services. Over the last financial year, there has been a significant drop in its liquid assets and net equity. This trend may indicate challenges such as decreased revenue, increased expenses, or cash flow mismanagement.

The company’s retained earnings (part of shareholders’ funds) have eroded, suggesting either losses or distributions exceeding profits. The very small share capital implies limited external funding, which restricts financial flexibility.

The working capital remains positive, avoiding immediate liquidity crisis, but the steep decline is a "red flag" symptom. The company’s financial "immune system" is weakened, making it more vulnerable to economic downturns or unexpected expenses.

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4. Recommendations

To improve financial wellness and restore a healthy financial state, the company should consider the following actions:

• Strengthen Cash Flow Management: Implement tighter controls on receivables and payables to improve liquidity. Explore short-term financing if necessary to avoid cash shortages.
• Review Cost Structure: Analyze expenses to identify and cut unnecessary costs, improving profitability and preserving reserves.
• Increase Capital Base: Consider raising additional paid-in capital or shareholder loans to bolster equity and provide a buffer.
• Revenue Enhancement: Explore new business opportunities or expand client base in real estate management to increase income streams.
• Regular Financial Monitoring: Establish monthly financial reviews focusing on liquidity ratios and cash flow forecasts to detect early signs of distress.
• Professional Advice: Engage a financial advisor or accountant to assist with budgeting, forecasting, and strategic planning.

By addressing these areas, Firefly Property Ltd can recover its financial "vitality" and build resilience against future challenges.

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