HEPWORTH PROPERTY SERVICES LTD

Executive Summary

HEPWORTH PROPERTY SERVICES LTD, a newly established real estate agency, currently faces financial challenges including negative working capital and shareholders’ funds, reflecting early-stage distress typical of startups. Immediate focus on improving liquidity and capital structure is essential to stabilize the business and support growth. With careful management and strategic financing, the company can improve its financial health and outlook.

HEPWORTH PROPERTY SERVICES LTD - Analysis Report

Company Number: 14835983

Analysis Date: 2025-07-29 15:23 UTC

Financial Health Assessment for HEPWORTH PROPERTY SERVICES LTD (As at 31 May 2024)

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1. Financial Health Score: D

Explanation:
The company shows early warning signs of financial distress. The negative net current assets and shareholders’ funds indicate a liquidity crunch and capital deficiency. While the company is newly incorporated (less than 1 year old) and may still be in its startup phase, its balance sheet reveals "symptoms of distress" that require close monitoring and prompt management action to restore financial health.

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2. Key Vital Signs

Metric	Value	Interpretation
Cash at Bank	£286	Very low cash reserves, indicating limited immediate liquidity.
Current Liabilities	£817	Obligations due within one year exceed available cash and current assets.
Net Current Assets	£-531	Negative working capital, the company owes more than it owns in short-term assets.
Net Assets / Shareholders’ Funds	£-531	Negative equity, meaning liabilities exceed assets; a sign of capital erosion.
Number of Employees	0	No employees, which may reduce overhead but also limits operational capacity for revenue growth.
Company Age	~1 year	Very young company; early stage financial profiles often show negative equity as investments are made.

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3. Diagnosis: Financial Condition Overview

HEPWORTH PROPERTY SERVICES LTD currently exhibits "symptoms of distress," notably a negative net asset position and working capital deficit. These vital signs reflect a company that has more short-term debts than it can cover with its current assets, including cash. Essentially, the company’s financial "pulse" shows strain, potentially due to startup costs, initial operating expenses, or delayed revenue generation.

The very low cash balance (£286) is a critical concern, limiting the company’s ability to meet immediate financial obligations without external funding or credit. Negative shareholders’ funds (£-531) indicate the business is technically insolvent on a balance sheet basis, though this can be common for startups before they scale revenue.

The absence of employees suggests low fixed costs, which can be a positive factor in managing cash burn, but also may limit operational growth or capacity to generate income. The company’s turnover and profitability data are not disclosed, which limits the full assessment of operational performance.

The director, Ms. Anna-Marie Warren, holds full ownership and control, which simplifies decision-making but also concentrates financial risk.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity:
  The company should focus on increasing cash reserves to create a "healthy cash flow." This might involve securing additional financing (equity injection or short-term loans), accelerating receivables, or renegotiating payment terms with suppliers to ease immediate cash pressure.

• Capital Injection:
  Consider a shareholder capital injection to restore positive net assets and strengthen the balance sheet, improving the company’s credibility with creditors and partners.

• Cost Management:
  Maintain low operating costs while the company builds revenue, and carefully monitor all expenditures to prevent further erosion of capital.

• Revenue Generation:
  Accelerate sales or service contracts to convert the company’s assets into cash and reduce reliance on external funding. A clear plan to grow turnover is critical.

• Financial Monitoring:
  Regularly review financial statements and cash flow forecasts to detect early signs of financial stress and react promptly.

• Seek Professional Advice:
  Engage with financial advisors or accountants to assist in financial planning, cash flow management, and exploring funding options.

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