L PETERS PROPERTY SERVICES LTD

Executive Summary

L PETERS PROPERTY SERVICES LTD is currently experiencing significant financial distress, with negative net assets and severely limited liquidity indicating an urgent need for financial intervention. To avoid insolvency, the company should prioritize cash flow management, consider capital restructuring, and implement tighter financial controls. Without such actions, the prognosis points to increasing financial instability.

L PETERS PROPERTY SERVICES LTD - Analysis Report

Company Number: NI685425

Analysis Date: 2025-07-29 20:32 UTC

Financial Health Assessment: L PETERS PROPERTY SERVICES LTD (NI685425)

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress primarily due to a negative net assets position in the latest year. This is a critical "vital sign" indicating insolvency or imminent financial pressure. Despite being a micro-entity with limited complexity, the balance sheet trends and liabilities raise concerns about the company's financial stability.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	1,776	2,090	Small amount of long-term assets, typical for a micro property services firm. Slight decrease.
Current Assets	2,044	5,801	Sharp decline in liquid assets (cash, receivables), indicating worsening short-term liquidity ("cash flow health").
Current Liabilities	40,072	23,172	Substantial increase in short-term obligations, now 20x the current assets, a symptom of distress.
Net Current Assets (Working Capital)	(38,028)	(17,371)	Negative working capital, meaning inability to cover short-term debts with short-term assets.
Total Assets Less Current Liabilities	(36,252)	(15,281)	Indicates total assets minus short-term debts is negative, a severe liquidity issue.
Creditors Falling Due After One Year	720	660	Minor deferred income/accruals, not significant compared to liabilities.
Net Assets (Shareholders' Funds)	(36,972)	(15,941)	Negative equity, indicating liabilities exceed assets by a large margin; a critical red flag.
Shareholders' Funds	(36,972)	(15,941)	Mirrors net assets; capital erosion likely due to accumulated losses or loans classified as debt.

Additional Context:

• No employees, minimal fixed assets, consistent with a micro-property services company likely leasing or managing properties rather than owning substantial assets.
• The company is controlled 100% by Miss Lindsey Marie Peters, which can be positive for decision-making agility but also concentrates financial risk.
• The company is active and compliant with filing deadlines, which shows operational discipline despite financial challenges.

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3. Diagnosis

The company exhibits symptoms of financial distress characterized by negative net assets and severely negative working capital. The liabilities, especially current liabilities, have grown sharply in the latest financial year, outstripping the company's ability to cover them with available current assets. This suggests potential cash flow problems, possibly due to increased short-term borrowings, unpaid creditors, or deferred obligations.

The deterioration signals the company may be relying on external funding or deferrals to meet its obligations, which is unsustainable in the long term without improved profitability or capital injection. While the company is still operational and compliant, the balance sheet is akin to a patient showing signs of organ failure—urgent intervention is needed to stabilize the condition.

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4. Recommendations

• Urgent Cash Flow Review and Management:
  Conduct a detailed cash flow analysis to identify immediate liquidity gaps. Prioritize collections, negotiate extended payment terms with creditors, and reduce discretionary expenses.

• Capital Injection or Debt Restructuring:
  Explore options for equity injection from the shareholder or restructure existing debts with lenders to ease short-term liabilities.

• Cost Control and Revenue Enhancement:
  As a property services business, review contracts and service pricing to improve margins. Consider cost-cutting measures without compromising service quality.

• Financial Forecasting and Monitoring:
  Implement robust financial forecasting to anticipate future liquidity needs and avoid surprises. Regular monitoring akin to "vitals" in a medical patient chart will alert to early signs of distress.

• Professional Advice:
  Engage with insolvency practitioners or financial advisors if liabilities continue to outpace assets, to explore formal restructuring options and avoid forced liquidation.

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