HARBOUR PROPERTY MANAGEMENT LIMITED

Executive Summary

Harbour Property Management Limited maintains a stable financial position with healthy liquidity and positive net assets, despite a gradual decline in fixed assets and equity. The company shows good short-term financial health but should monitor long-term liabilities and asset levels closely. Strategic focus on asset reinvestment, profitability, and governance will support stronger future financial wellness.

HARBOUR PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 12776901

Analysis Date: 2025-07-29 16:56 UTC

Financial Health Assessment for HARBOUR PROPERTY MANAGEMENT LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a generally stable financial position with solid net current assets and positive net assets. However, there is a noticeable decline in fixed assets and net assets over recent years, indicating some erosion of long-term investments or asset base. The current liabilities are well covered by current assets, showing good short-term liquidity. The micro-entity status and small scale of operations mean financial flexibility is limited but currently adequate. Overall, the "B" grade reflects a healthy but cautiously monitored state.

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2. Key Vital Signs

Vital Sign	2024 Value (£)	Interpretation
Fixed Assets	32,615	Declined from £70,117 in 2020, indicating asset disposals or depreciation—monitor long-term capacity.
Current Assets	59,647	Adequate short-term resources; decreased from prior years but still sufficient to cover liabilities.
Current Liabilities	35,717	Reduction from £106,753 in 2020, showing improved short-term debt management.
Net Current Assets	37,334	Healthy working capital; positive buffer between short-term assets and liabilities.
Total Assets Less Current Liabilities	69,949	Indicates overall asset strength after covering short-term debts.
Creditors due after 1 year	35,717	Significant long-term liabilities exist; must ensure sustainable cash flows to service debt.
Net Assets / Shareholders Funds	34,157	Positive equity, but slightly reduced from previous years, suggesting some retained earnings erosion.
Employees	1	Micro-size operation, limited human resource risk but also limited capacity.

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3. Diagnosis

"Patient" Profile:
Harbour Property Management Limited shows signs of a stable but modestly shrinking asset base, with a consistent positive net asset position and good liquidity. The company’s "vital signs" suggest that it is managing its working capital well, with current assets comfortably exceeding current liabilities. The decrease in fixed assets over four years might reflect asset sales or depreciation, which could impact operational capacity if it continues.

The improved management of current liabilities—from a large £106k in 2020 to £35k in 2024—indicates successful efforts to reduce short-term financial stress. However, the presence of long-term creditors (over £35k) requires attention to ensure ongoing solvency.

The company is a micro-entity with only one employee and minimal share capital (£1), which limits financial and operational flexibility. The 75-100% ownership by a single director also suggests centralized control, which can be a strength or risk depending on governance.

Symptoms of distress:

• Declining fixed assets may indicate underinvestment or asset disposals.
• Slight decline in net assets over recent years could signal retention of profits is low or the company is incurring small losses or distributions.
• Heavy reliance on a single director and small scale operations may limit resilience against market shocks.

Healthy signs:

• Positive net current assets indicate good short-term financial health.
• Steady reduction in current liabilities demonstrates improved debt management.
• Compliance with filing deadlines and up-to-date accounts reflects good governance discipline.

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4. Recommendations

1. Asset Management:
   Review fixed assets to determine the cause of decline. If disposals occurred, assess impact on service capacity and consider reinvestment strategies to maintain operational effectiveness.

2. Enhance Profit Retention:
   Investigate profitability trends to ensure retained earnings grow, strengthening net asset position and financial resilience.

3. Debt Monitoring:
   Maintain vigilance on long-term creditors. Develop a clear plan for servicing or refinancing long-term liabilities to avoid liquidity stress.

4. Operational Scaling:
   Consider strategic growth plans to diversify revenue and reduce operational concentration risk stemming from a single employee and director.

5. Cash Flow Forecasting:
   Regularly update cash flow forecasts to foresee potential liquidity shortages and manage working capital proactively.

6. Governance and Succession Planning:
   With control heavily centralized, implement governance safeguards and consider succession planning to mitigate key-person risk.

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