MCSORLEY PROPERTIES LTD

Executive Summary

MCSORLEY PROPERTIES LTD exhibits a stable financial foundation with positive net assets and no liabilities, characteristic of a newly formed micro-entity in the property management sector. While liquidity is currently neutral due to no current assets, the absence of debt and clear governance structure provide a healthy base for growth. Focus should be on building cash reserves, initiating revenue streams, and monitoring financial performance to ensure long-term financial wellness.

MCSORLEY PROPERTIES LTD - Analysis Report

Company Number: 14760633

Analysis Date: 2025-07-29 12:43 UTC

Financial Health Assessment Report for MCSORLEY PROPERTIES LTD

---

1. Financial Health Score: B

Explanation:
MCSORLEY PROPERTIES LTD shows a solid foundational financial position for a newly incorporated micro-entity, with positive net assets and no current liabilities. The absence of current liabilities and a positive net asset base indicates no immediate financial distress or liquidity issues, reflecting a "healthy pulse." However, the lack of current assets and minimal operational history limits the ability to assign a top-tier score. The company is financially stable but still in early stages of business development.

---

2. Key Vital Signs

Vital Sign	Value	Interpretation
Fixed Assets	£57,000	Indicates initial investment in long-term property assets, typical for property management.
Current Assets	£0	No cash or short-term receivables – could suggest limited operational activity or cash reserves.
Current Liabilities	£0	No short-term debts or payables, which is positive for liquidity health.
Net Current Assets	£0	Neutral working capital position, no excess current assets to cover short-term obligations.
Net Assets / Equity	£57,000	Positive shareholder equity reflects sound capitalization and no debt burden.
Employees	0	No staff employed yet, indicating minimal operational complexity or early-stage status.
Account Category	Micro	Smallest reporting category, minimal regulatory burden, typical for startups or dormant companies.

---

3. Diagnosis: Financial Condition Analysis

• Balance Sheet Strength:
  The company’s balance sheet shows a "healthy backbone" with fixed assets of £57,000 and no liabilities. This suggests the company has made an initial capital investment, likely in property relevant to its resident property management SIC classification (98000). The absence of liabilities implies no financial strain from debts or payables, which is a positive symptom.

• Liquidity and Cash Flow:
  The zero current assets (e.g., cash, receivables) are a "warning sign" for liquidity. Without current assets, the company might face challenges in meeting short-term expenses if they arise unexpectedly. However, since there are no current liabilities, immediate pressure is minimal.

• Operational Activity:
  No employees and no reported operational revenues or expenses reflect the company is likely in a setup or investment phase rather than active trading. This is common for a first-year micro-entity but requires monitoring as business operations commence.

• Governance and Control:
  Directors and persons with significant control (PSC) are the two founders, each holding 25-50% shares and voting rights. This clear governance structure supports stable decision-making but also concentrates control.

• Risk Factors:
  The lack of audit and limited financial disclosures typical for micro-entities means less transparency, which could mask operational or financial risks. The company should maintain rigorous internal controls as operations scale.

---

4. Recommendations: Steps to Improve Financial Wellness

• Build Liquidity Reserves:
  Establish and maintain a cash buffer to cover at least 3-6 months of operating costs. This will provide a "healthy cash flow" cushion to manage day-to-day expenses and unexpected outflows.

• Develop Operational Revenues:
  Begin active trading and revenue generation to convert fixed assets into cash inflows. This will improve current assets and working capital, supporting sustainable growth.

• Implement Financial Monitoring:
  Adopt basic financial metrics tracking (cash flow forecasts, profit margins) to detect early signs of distress and enable timely corrective action.

• Plan for Growth:
  Consider hiring staff or outsourcing essential services to support property management operations as business scales beyond the micro category.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

---