HOME AND PROPERTY SOLUTIONS LTD

Executive Summary

Home And Property Solutions Ltd is currently financially distressed with negative net assets and severe liquidity issues indicated by a large deficit in working capital. The company’s ability to service debt or meet commercial obligations is doubtful under the present financial structure. Without significant improvement in cash flow and equity position, extending credit would carry high risk.

HOME AND PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13897146

Analysis Date: 2025-07-29 18:18 UTC

1. Credit Opinion: DECLINE
   Home And Property Solutions Ltd exhibits significant financial distress with net liabilities of £10,682 as of February 2024. The company’s current liabilities (£225,529) far exceed its current assets (£642), resulting in a severely negative working capital position (-£224,887). Additionally, the company has no employees, minimal cash, and heavy reliance on creditors with substantial amounts due after one year (£102,356). This weak liquidity and negative equity position raise concerns about its ability to meet short-term obligations or service any new credit facilities. Given the absence of a profit and loss account and lack of audit, the financial transparency is limited, further heightening risk.

2. Financial Strength:
   The balance sheet shows a recent acquisition or capitalisation of fixed assets (£317,341), but the burden of current and long-term liabilities overshadows this. Shareholders’ funds are negative, indicating erosion of capital and accumulated losses. The company operates in the real estate leasing sector (SIC 68209), which often requires significant capital; however, the current financial structure is fragile. The lack of employees and minimal current assets signals limited operational capacity. Overall, the financial strength is weak and insufficient to support additional credit without material improvement.

3. Cash Flow Assessment:
   The company has negligible current assets and cash (£642), while current liabilities are substantial (£225,529), indicating a critical cash flow mismatch. Net current liabilities of nearly £225k suggest the company is highly reliant on creditor financing and may face liquidity challenges. No details on operational cash flows or profit generation are provided, and the absence of employees implies limited business activity. The negative working capital position and no indication of incoming cash flows raise serious liquidity concerns.

4. Monitoring Points:

• Improvement in working capital and reduction of current liabilities
• Generation of positive cash flows and operating profits
• Stabilisation or positive trend in net assets and shareholders’ funds
• Timely filing of full accounts including profit and loss statements for better transparency
• Any changes in ownership or management that might impact financial stewardship