GO EXPLORE PROPERTIES LTD

Executive Summary

GO EXPLORE PROPERTIES LTD is showing fragile financial health with negative working capital and a high debt burden despite a recent return to profitability and positive net assets. The company must focus on improving liquidity, managing debt, and boosting revenues to ensure long-term stability. Immediate financial care and strategic adjustments are essential to prevent deterioration and support recovery.

GO EXPLORE PROPERTIES LTD - Analysis Report

Company Number: 13550488

Analysis Date: 2025-07-29 19:13 UTC

Financial Health Assessment for GO EXPLORE PROPERTIES LTD
Assessment Date: Post 31 August 2024 Accounts

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1. Financial Health Score: D

Explanation:
GO EXPLORE PROPERTIES LTD displays several signs of financial strain. Despite being a micro-entity with a modest turnover (£7,392 for 2024), the company is burdened with high liabilities relative to its current assets, resulting in negative net working capital over multiple years. However, the company recently returned to a positive net asset position and a small profit, indicating slight improvement but overall fragile financial health.

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2. Key Vital Signs (Core Financial Metrics & Interpretation)

Metric	2024 Value	Interpretation
Turnover	£7,392	Very low revenue, typical for a micro real estate business needing growth.
Profit for the Period	£1,485	Positive profit indicates some operational control and potential for improvement.
Fixed Assets	£162,500	Significant investment in long-term assets, likely property holdings.
Current Assets	£6,959	Very low liquidity; cash and short-term receivables are minimal.
Current Liabilities	£48,905	High short-term debts causing negative working capital.
Net Current Assets	-£41,946	Negative working capital signals "symptoms of distress" in liquidity management.
Long-term Liabilities	£119,120	Heavy long-term debt load relative to assets, risky leverage.
Net Assets (Equity)	£1,434	Small positive equity, recovering from previous years’ deficits.
Shareholders’ Funds	£1,434	Reflects owners’ residual interest, very thin margin of safety.

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3. Diagnosis: Financial Condition Summary

• Liquidity & Cash Flow:
  The company suffers from a "weak pulse" in liquidity. Its current liabilities significantly exceed current assets, indicating potential cash flow problems. This means the company might struggle to meet short-term obligations without additional financing or asset liquidation.

• Solvency & Leverage:
  The firm carries a heavy burden of long-term liabilities (£119k), nearly matching its fixed assets (~£162k). This high leverage puts pressure on the company’s solvency and increases financial risk, especially if cash flows do not improve.

• Profitability:
  A modest profit in the latest year (£1,485) suggests the business has started to stabilize operationally, but earnings remain very low compared to liabilities.

• Asset Structure:
  The company’s assets are concentrated in fixed assets (likely property), which are less liquid. This makes it harder to convert assets quickly to cash if needed.

• Trend:
  Over four years, the company was in negative equity but has just moved to a small positive net asset position, which is a positive sign but still precarious.

• Business Viability:
  Given the current financial "symptoms," the company resembles a patient with chronic but manageable illness — it requires ongoing care and intervention to prevent deterioration.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity:

  • Enhance cash flow by accelerating rent collections or other receivables.
  • Reduce short-term liabilities through renegotiation of payment terms or refinancing.
  • Hold a cash reserve or secure a credit facility as a buffer.

• Debt Management:

  • Explore options to restructure or reduce long-term debt to ease interest and principal repayment burdens.
  • Consider equity injections from shareholders to strengthen net assets.

• Revenue Growth:

  • Increase turnover by expanding property management contracts or improving occupancy rates.
  • Explore additional income streams related to real estate management.

• Cost Control:

  • Monitor and reduce operational expenses carefully without compromising service quality.

• Financial Monitoring:

  • Implement regular financial health checks to detect early warning signs ("symptoms") of distress.
  • Maintain transparent and timely financial reporting to stakeholders.

• Strategic Review:

  • Evaluate the asset portfolio to identify underperforming properties that could be sold to improve liquidity.
  • Consider professional financial advice to optimize capital structure.

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Medical Analogy Summary:

GO EXPLORE PROPERTIES LTD currently exhibits "symptoms of financial strain," such as negative working capital and heavy debt load, akin to a patient with a chronic condition but showing signs of recovery (small profit and positive net assets). Immediate interventions to improve liquidity and reduce debt are critical to avoid a financial "crisis" or "collapse." With proper management and strategic steps, the company can strengthen its financial "immune system" and progress toward sustainable health.

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