FIYO PROPERTY UPGRADES LTD

Executive Summary

FIYO PROPERTY UPGRADES LTD shows worrying signs of financial stress with negative working capital and sharply reduced net assets in 2024. The company’s liquidity is strained, and its equity base has eroded significantly. Immediate focus on liquidity management, operational review, and potential capital injection is necessary to restore financial health and ensure sustainable operations.

FIYO PROPERTY UPGRADES LTD - Analysis Report

Company Number: 13101694

Analysis Date: 2025-07-29 20:49 UTC

Financial Health Assessment of FIYO PROPERTY UPGRADES LTD

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1. Financial Health Score: D

Explanation:
The company exhibits symptoms of financial distress, notably a negative working capital position and drastically reduced net assets in the latest financial year. While the company remains active and compliant with its filing obligations, the deterioration in liquidity and equity base signals significant financial strain.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	3,271	5,207	Shrinking current assets reduce liquidity buffer.
Cash at Bank and in Hand	221	308	Very low cash reserves; limited immediate cash availability.
Debtors	0	1,664	Complete disappearance of debtors raises concerns about revenue recognition or collection.
Current Liabilities	3,494	4,187	Slight reduction but still substantial short-term obligations.
Net Current Assets (Working Capital)	-223	1,020	Negative working capital indicates inability to cover short-term debts—a key symptom of liquidity distress.
Net Assets (Equity)	132	1,465	Sharp decline in net assets signals erosion of the company’s financial foundation.
Share Capital	100	100	Minimal share capital, consistent over years.

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3. Diagnosis

FIYO PROPERTY UPGRADES LTD’s financial “vital signs” reveal several critical symptoms indicating distress:

• Liquidity Issues: Negative working capital (-£223) in 2024 means the company does not have sufficient short-term assets to cover its short-term liabilities. This is a classic "symptom" of cash flow problems that could lead to payment delays, strained supplier relationships, or insolvency risk.

• Eroding Equity: Net assets have fallen from £1,465 in 2023 to just £132 in 2024. This erosion suggests either sustained losses or asset impairments, weakening the company’s financial stability and reducing its cushion against future shocks.

• Reduced Receivables: The disappearance of debtors from £1,664 to zero could mean a change in business operations, aggressive write-offs, or collection issues. This sudden drop may reflect underlying operational problems or changes in credit policy.

• Low Cash Reserves: With only £221 cash on hand at year-end, the company has minimal liquid assets to cover urgent expenses, reflecting a "weak pulse" in cash flow health.

• Fixed Assets Decline: Tangible fixed assets decreased slightly, which may indicate asset disposals or revaluations, but this is less significant compared to liquidity and equity issues.

• Compliance: The company is up to date on filings and is not in liquidation or administration, which is a positive sign of ongoing operational viability.

Overall, the company’s financial health can be likened to a patient showing signs of dehydration and weakened vitality: urgent intervention is needed to restore balance and prevent further deterioration.

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4. Recommendations

To improve financial wellness and stabilize the company’s financial health, consider the following actions:

• Improve Liquidity Management:

  • Accelerate collection of receivables (if any new ones exist).
  • Negotiate extended payment terms with suppliers to ease short-term cash pressure.
  • Explore short-term financing options such as overdrafts or invoice financing to cover working capital gaps.

• Review Business Operations:

  • Investigate reasons for the disappearance of debtors and address any revenue recognition or credit control issues.
  • Reassess cost structures to reduce expenses and improve profitability.

• Capital Injection:

  • Consider raising additional equity capital or shareholder loans to replenish net assets and strengthen the balance sheet.

• Asset Utilization:

  • Evaluate fixed assets for potential sale or better utilization to generate cash.

• Financial Monitoring:

  • Implement rigorous cash flow forecasting and financial reporting to detect issues early.
  • Engage with professional advisors to support turnaround strategies.

• Strategic Planning:

  • Review market conditions and business model viability in the construction holding and installation sector.
  • Explore diversification or new revenue streams if current operations are under strain.

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