GROUND PROPERTY FREEHOLDS LTD

Executive Summary

GROUND PROPERTY FREEHOLDS LTD is currently dormant with no trading activity, reflected in negative equity and a lack of current assets to cover liabilities. While not insolvent, the company is financially inactive and at risk if reactivation occurs without capital support. Strategic capital infusion and commencement of operations are recommended to restore financial vitality.

GROUND PROPERTY FREEHOLDS LTD - Analysis Report

Company Number: 14184309

Analysis Date: 2025-07-29 19:34 UTC

Financial Health Assessment: GROUND PROPERTY FREEHOLDS LTD

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1. Financial Health Score: D

Explanation:
The company is currently classified as dormant with no trading activity during the reported periods. Its balance sheet shows net current liabilities and negative shareholders' funds as of the latest year-end. This reflects a fragile financial state akin to a patient with no active circulation—no inflow of cash or income to sustain operations and a small but persistent deficit. The absence of trading activity and income means there is no "healthy cash flow" to support recovery or growth. Overall, the company shows symptoms of financial inactivity and underperformance, resulting in a below-average financial health score.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	0	99	No liquid or short-term assets in 2024; deteriorated.
Current Liabilities	53	153	Small short-term debts, reduced but still present.
Net Current Assets	(53)	44	Negative working capital in 2024, indicating strain.
Shareholders’ Funds	(53)	44	Equity turned negative, reflecting accumulated losses or liabilities exceeding assets.
Trading Activity	None	None	Dormant status confirmed by no income or expenses.
Employees	0	0	No staff employed, consistent with dormancy.

Interpretation:

• Zero current assets and negative net current assets suggest the company lacks readily available resources to pay off its current liabilities, indicating a liquidity shortage.
• Negative shareholders’ funds signal that the company’s liabilities exceed its assets, a warning sign of financial distress or insolvency risk if this persists.
• Dormant status and no trading activity mean the company is not generating revenue or profits, akin to a patient in a medically induced coma—currently inactive but not necessarily terminal.
• Reduced liabilities from 2023 to 2024 is a positive sign but insufficient to offset the lack of assets and negative equity.

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3. Diagnosis

GROUND PROPERTY FREEHOLDS LTD is in a state of financial dormancy with no operational or trading activity since incorporation. The company shows symptoms of financial "inactivity," with no income generation or expenditure, and a shrinking asset base leading to negative equity. Its current liabilities, although small, are not supported by current assets, exposing it to short-term liquidity stress. The negative shareholders' funds suggest that if the company were to commence trading without additional capital infusion or asset acquisition, it may face challenges meeting obligations.

However, the company has complied with statutory requirements and remains active on the register, which indicates no formal insolvency or liquidation proceedings. The controlling entity (Ground Property Ltd) holds full ownership and control, which might imply strategic reasons for dormancy, such as holding assets off-balance sheet or awaiting future activation.

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4. Recommendations

• Capital Injection or Asset Acquisition: To revive financial health, the company needs either a capital injection or acquisition of assets to build current assets and positive equity, restoring "healthy circulation" to the balance sheet.
• Commence Trading or Revenue Generation: Begin active business operations or monetize existing real estate holdings to generate cash flow and reduce liabilities.
• Close Monitoring of Liabilities: Ensure current liabilities do not grow unchecked; maintain strict control over expenditures and creditor payments to prevent liquidity crisis.
• Regular Financial Review: Even in dormancy, conduct periodic financial reviews to monitor any changes and prepare for reactivation or restructuring.
• Consider Group Strategy: As the company is fully controlled by Ground Property Ltd, assess if consolidation or restructuring within the group could improve overall financial health and operational efficiency.

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