HAWAA PROPERTIES LTD

Executive Summary

HAWAA PROPERTIES LTD is currently in a financially vulnerable position with negative net assets and significant short-term liabilities exceeding its liquid assets, reflecting liquidity and solvency challenges. Immediate steps such as capital injection and debt restructuring are recommended to restore financial health and ensure sustainable operations. Without intervention, the company risks deteriorating into insolvency.

HAWAA PROPERTIES LTD - Analysis Report

Company Number: 14415521

Analysis Date: 2025-07-29 16:38 UTC

Financial Health Assessment: HAWAA PROPERTIES LTD (As of 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress with negative net assets and working capital. The score D reflects a precarious financial position, indicating urgent attention is needed to restore financial stability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	342,371	Indicates investment in long-term assets, likely property holdings consistent with real estate activity.
Current Assets	20,042	Very low short-term assets, mainly cash or receivables, insufficient to cover immediate liabilities.
Current Liabilities	381,187	High short-term debts due within one year, creating liquidity pressure.
Net Current Assets	-361,145	Negative working capital ("symptom of liquidity distress"), meaning current debts far exceed current assets.
Total Assets less Current Liabilities	-18,774	The company’s long-term financial position is negative; assets do not cover current liabilities.
Net Assets (Shareholders’ Funds)	-19,614	Indicates accumulated losses or deficit equity; shareholders’ funds are in negative territory.

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3. Diagnosis

The company is exhibiting symptoms of financial distress, mainly characterized by:

• Negative Working Capital: The "cash flow pulse" is weak, with current liabilities vastly exceeding current assets. This suggests the company may struggle to meet short-term obligations as they fall due, risking default or creditor pressure.

• Negative Net Assets: The company’s total liabilities exceed its assets, reflecting an "underlying illness" in equity. This can be due to accumulated losses or funding structure issues.

• Early Stage and Micro Entity: Incorporated in October 2022 and classified as a micro-entity, the company is in the early growth or establishment phase. The financial strain may stem from initial investments and start-up costs, common in property businesses acquiring assets.

• Single Director and Sole Shareholder Control: Control rests entirely with Dr. Aamir Shamsi, indicating centralized decision-making. While this can allow for agility, it may limit access to diverse capital or expertise in financial restructuring.

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4. Recommendations

To improve the financial wellness and avoid progression into more severe distress (like insolvency), the company should consider:

1. Liquidity Management:

   • Seek short-term financing or credit lines to cover current liabilities and ease cash flow pressure.
   • Accelerate collection of receivables or reduce operating expenses to improve current assets.

2. Capital Injection:

   • The sole shareholder might consider injecting additional equity or convertible loans to restore positive net assets and balance sheet strength.

3. Debt Restructuring:

   • Negotiate with creditors to extend payment terms or reduce liabilities, improving working capital health.

4. Operational Review:

   • Review property portfolio for potential disposals of non-core or underperforming assets to raise funds.
   • Assess rental income streams and cost controls to improve profitability and reserves.

5. Financial Reporting and Monitoring:

   • Maintain timely filings and consider engaging a financial advisor to prepare forecasts and cash flow projections.
   • Monitor key metrics monthly to detect early warning signs and respond proactively.

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Medical Analogy Summary:

HAWAA PROPERTIES LTD’s financial statements reveal a company with a fragile "financial heartbeat" marked by negative working capital and equity deficits—akin to a patient with low blood pressure and poor circulation. Immediate "intervention" through capital support and cash flow management is crucial to stabilize the condition and prevent financial "collapse."

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