HAVENS PROPERTIES LTD

Executive Summary

HAVENS PROPERTIES LTD is currently experiencing critical financial distress, evidenced by significant negative working capital and net equity. Immediate actions focusing on cash flow management, liability restructuring, and capital injection are essential to stabilize and restore financial health. Without intervention, the company risks insolvency despite its active status and promising operational sector.

HAVENS PROPERTIES LTD - Analysis Report

Company Number: 14555235

Analysis Date: 2025-07-20 11:45 UTC

Financial Health Assessment Report for HAVENS PROPERTIES LTD

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1. Financial Health Score: D

Explanation:
HAVENS PROPERTIES LTD exhibits significant financial distress signs, primarily due to a large negative net current asset position and overall negative net assets. The company’s liabilities far exceed its assets, suggesting a liquidity crunch and balance sheet insolvency. While the company is newly incorporated (Dec 2022) and a micro-entity, these figures indicate urgent attention is needed to restore financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,839	Very low investment in long-term assets
Current Assets	9,688	Low short-term resources available
Current Liabilities	90,066	Substantial short-term debts due within 1 year
Net Current Assets (Working Capital)	-80,378	Negative working capital; “symptom of cash flow distress”
Total Assets less Current Liabilities	-76,539	Indicates liabilities exceed assets; balance sheet insolvent
Net Assets (Equity)	-76,539	Negative net worth; shareholders’ funds eroded
Average Employees	2	Small staff size consistent with micro-entity status

Interpretation:

• Negative Working Capital: The company’s current liabilities are nearly 10 times its current assets, indicating severe liquidity issues. This is akin to a patient having a very weak pulse—cash inflows are insufficient to meet short-term obligations.
• Negative Net Assets: The company’s total liabilities exceed its total assets, indicating it is technically insolvent on the balance sheet. This is a critical symptom of financial distress, similar to an underlying organ failure in a patient.
• Small Asset Base: Fixed assets are minimal, reflecting limited investment or operational scale.
• New Company Status: Incorporated at the end of 2022, the company is still in its infancy, which can explain early losses or capital structure challenges but does not excuse negative equity.

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3. Diagnosis

HAVENS PROPERTIES LTD is currently in a precarious financial condition. The negative net current assets and net equity suggest the company’s liabilities are not being supported by sufficient assets or cash reserves. The company likely faces liquidity strain—struggling to pay off short-term creditors on time—which poses the risk of operational disruption or creditor enforcement action.

The business may be over-leveraged or have incurred expenses or debts disproportionate to its current asset base. This condition is typical of a company in its early development stage but requires corrective intervention to prevent insolvency.

The presence of two directors with relevant experience (Managing Director and Building Contractor) is a positive factor but will require robust financial and operational restructuring.

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4. Recommendations

To improve financial wellness and avoid further deterioration, HAVENS PROPERTIES LTD should consider the following actions:

• Immediate Cash Flow Management:
  Perform a rigorous cash flow forecast and prioritize payments to maintain supplier and creditor relationships. Avoid incurring new short-term debts without clear repayment plans.

• Restructure Current Liabilities:
  Negotiate with creditors to extend payment terms or reduce immediate liabilities. Consider formal restructuring options if negotiations fail.

• Capital Injection:
  Seek additional equity funding from existing shareholders or new investors to restore positive net assets. This capital will act as a financial “life support” to stabilize the balance sheet.

• Cost Control:
  Review all operating expenses and staffing levels (currently 2 employees) to identify savings. Limit discretionary spending to preserve cash.

• Business Strategy Review:
  Evaluate the business model, pricing, and market positioning to improve revenue generation and profitability.

• Professional Advice:
  Engage a financial advisor or insolvency practitioner early to explore all options including turnaround strategies or, if necessary, formal insolvency procedures to protect stakeholders.

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