GROVE VIEW PROPERTY CONSULTANTS LIMITED

Executive Summary

Grove View Property Consultants has transitioned from a healthy financial position to one showing clear signs of distress, with negative net assets and working capital deficit. Immediate attention to cash flow management, cost control, and capital reinforcement is necessary to avoid further deterioration. With timely interventions, the company can stabilize and rebuild its financial health.

GROVE VIEW PROPERTY CONSULTANTS LIMITED - Analysis Report

Company Number: 13550895

Analysis Date: 2025-07-20 13:59 UTC

Financial Health Assessment for GROVE VIEW PROPERTY CONSULTANTS LIMITED

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1. Financial Health Score: D

Explanation:
The company’s recent financial data shows a concerning shift from a previously positive net asset position to a negative one, indicating financial distress. A grade D reflects the symptoms of financial strain and potential liquidity challenges, signaling that intervention is needed to restore health.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 (Latest)	2023 (Prior Year)	Interpretation
Fixed Assets	£638	£1,063	Very low fixed asset base, typical for a micro entity; stable but minimal investment in long-term assets.
Current Assets	£4,271	£17,379	Sharp decline in liquid or short-term assets, indicating reduced cash or receivables availability.
Current Liabilities	£5,988	£11,287	Decrease in short-term obligations, but still exceeds current assets in 2024, creating a liquidity crunch.
Net Current Assets (Working Capital)	-£1,717	£6,092	Negative working capital in 2024 denotes the company may struggle to meet short-term debts—symptom of financial stress.
Net Assets (Shareholders Funds)	-£1,079	£7,155	Negative equity indicates accumulated losses or depletion of capital; potential insolvency warning sign.
Average Number of Employees	2	2	Stable headcount, no reduction to offset financial pressures.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The financial "vital signs" reveal troubling symptoms:

• Liquidity Distress: Negative net current assets imply the company does not have enough short-term resources to cover immediate liabilities, risking payment delays or defaults.
• Capital Erosion: The transition from positive net assets (£7,155) to negative (-£1,079) within one year is a critical alarm. This suggests the business has either incurred significant losses, or there has been a withdrawal of capital.
• Asset Base Shrinking: Fixed assets have decreased slightly, and current assets have diminished substantially, further weakening the company’s buffer to absorb shocks.
• Micro Entity Constraints: As a micro entity, the company has minimal reporting requirements and limited resources, which can restrict strategic financial maneuvers.
• Operational Stability: The number of employees remains constant, possibly indicating fixed overheads that may be difficult to reduce in response to financial strain.

Overall, the company exhibits the "symptoms of distress" commonly seen in early stages of financial health deterioration. While not necessarily insolvent yet, the negative net assets and working capital deficit are warning signals that require swift attention.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Cash Flow Management: Prioritize improving cash inflows and managing outflows carefully. Negotiate extended payment terms with suppliers and accelerate receivables collection to restore positive working capital.
• Cost Control: Review all operating expenses, including payroll, and identify areas for reduction or efficiency improvements without compromising core service delivery.
• Capital Injection: Consider equity financing or loans from shareholders or external investors to replenish depleted capital and improve the balance sheet.
• Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early signs of distress and adapt promptly.
• Strategic Review: Evaluate business model viability and consider diversification or pivoting activities to enhance revenue streams.
• Professional Advice: Engage with financial advisors or insolvency practitioners proactively to explore restructuring options before challenges escalate.

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Medical Analogy Summary

The company currently exhibits symptoms akin to a patient with a weakened immune system: low reserves (assets), high immediate obligations (liabilities), and a depleted "blood supply" (cash). This condition, if left untreated, could lead to a serious financial "illness" such as insolvency. Early intervention and disciplined management are essential to restore the company’s financial health and vitality.

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