I SPOT PROPERTY LTD

Executive Summary

I SPOT PROPERTY LTD is currently experiencing significant financial distress, marked by ongoing negative net current assets and shareholders’ funds over several years. Immediate corrective actions such as capital injection and improved cash flow management are essential to stabilize the company and prevent insolvency.

I SPOT PROPERTY LTD - Analysis Report

Company Number: 12782099

Analysis Date: 2025-07-29 14:15 UTC

Financial Health Assessment for I SPOT PROPERTY LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress with persistent negative net current assets and shareholders’ funds over the past five years. The balance sheet reveals an ongoing deficit position, indicating the company is “under medical supervision” financially, requiring urgent corrective measures. The score “D” reflects a state of financial weakness bordering on insolvency risk if unaddressed.

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2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Current Assets	£100	Extremely low liquidity; virtually no cash or readily convertible assets to cover short-term debts.
Current Liabilities	£23,589	High short-term debts or obligations due within one year.
Net Current Assets	-£23,489	Strong symptom of liquidity crisis; liabilities exceed assets by a large margin.
Shareholders’ Funds (Equity)	-£23,489	Negative equity indicates accumulated losses or deficits; company’s net worth is below zero.
Account Category	Micro	Smallest category with minimal filing requirements; financial data limited but still revealing.
Director Presence	Single director (Mr. Zaheer Hanif)	Control concentrated; risk if limited expertise or capacity for turnaround.

Interpretation:
The company’s vital signs show a prolonged liquidity and solvency problem—a “weak pulse” and “laboured breathing” financially. Negative shareholders’ funds and net current assets indicate the company owes significantly more than it owns, a red flag for creditors and stakeholders.

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3. Diagnosis

I SPOT PROPERTY LTD is currently in a state of financial distress characterized by persistent negative working capital and shareholders’ equity over multiple years. This “symptom” pattern suggests ongoing losses or undercapitalization with no evident recovery trend. The company’s cash and liquid assets (current assets) are negligible compared to its short-term liabilities, indicating a “cash flow starvation” scenario.

Despite being active and compliant with filing deadlines, the company’s balance sheet reveals a precarious financial condition that could impede its ability to finance operations or meet creditor demands without external intervention. This condition resembles a patient with chronic illness requiring careful monitoring and treatment to avoid collapse (insolvency).

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4. Recommendations

• Immediate Cash Flow Management:
  Inject working capital or secure short-term financing to cover current liabilities and avoid payment defaults. Like administering emergency fluids, this stabilizes immediate liquidity.

• Capital Restructuring:
  Consider equity injection from the controlling shareholder or new investors to restore positive shareholders’ funds and improve solvency. This is akin to strengthening the patient’s immune system for recovery.

• Cost Control & Operational Efficiency:
  Review and reduce any unnecessary expenses, streamline operations, and enhance revenue streams to arrest ongoing losses.

• Professional Financial Advice:
  Engage with insolvency practitioners or financial advisors to explore restructuring options, turnaround plans, or formal insolvency procedures if recovery is not feasible.

• Regular Financial Monitoring:
  Implement rigorous monthly cash flow forecasting and balance sheet reviews to detect early warning signs and take timely action.

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