MILLER & EANES PROPERTY SOLUTIONS LTD

Executive Summary

Miller & Eanes Property Solutions Ltd faces significant financial distress characterized by a large deficit in net assets and negative working capital, signaling liquidity challenges and solvency risks. While investments in assets and director support offer some lifelines, urgent action on cash flow management, debt restructuring, and profitability enhancement is critical to restore financial health and ensure the company’s survival.

MILLER & EANES PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 12478344

Analysis Date: 2025-07-20 16:39 UTC

Comprehensive Financial Health Assessment
Company: MILLER & EANES PROPERTY SOLUTIONS LTD
Assessment Date: Financial Year Ending 29 February 2024

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress symptoms, notably persistent net liabilities and worsening working capital deficiency. Although the business continues to operate (going concern basis), the financial indicators reflect substantial risk to sustainability without corrective action. The negative net assets and growing borrowings warrant a cautious rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets (Shareholders' Equity)	-145,885	Critical deficit indicating liabilities exceed assets significantly; "symptom of distress".
Net Current Assets (Working Capital)	-68,842	Negative working capital implies liquidity challenges; insufficient short-term resources to cover immediate debts.
Cash at Bank	15,479	Moderate cash balance ("healthy cash flow" indicator), improvement vs prior year but insufficient alone to cover current liabilities.
Current Liabilities	99,196	High short-term obligations, nearly 6.4 times the cash balance.
Total Borrowings (Current + Non-current)	180,540	Rising debt burden, nearly quadrupled since 2022; financial leverage increasing risk.
Fixed Assets	42,484	Growth in assets, indicating investment in business infrastructure.
Debtors	14,875	Decrease from prior year; may indicate improved collection or reduced sales.
Directors’ Loans	10,957 (non-interest bearing)	Supportive financing from directors, showing commitment but signaling external financing challenges.
Profit & Loss Reserve (Retained Earnings)	-145,887	Accumulated losses, indicating ongoing unprofitability or cash burn.

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3. Diagnosis: Financial Condition Assessment

• Liquidity Stress: The company suffers from a "cash flow cold" symptom as current liabilities substantially exceed liquid assets and current receivables. Negative working capital (-£68,842) suggests the business may face difficulty in meeting short-term obligations without additional financing or operational improvements.

• Balance Sheet Weakness: The negative net assets of -£145,885 signify accumulated losses and a deficit in shareholder equity. This is a serious symptom akin to a "chronic illness" in financial health, pointing to insolvency risk if unaddressed.

• Rising Debt Load: Borrowings have increased markedly from £62,224 (2023) to £180,540 (2024), indicating the company relies heavily on debt financing to maintain operations. The interest burden and repayment obligations could exacerbate financial strain.

• Asset Investment: The growth in fixed assets (tangible and intangible) reflects efforts to build capacity or improve service offerings, which is a "positive pulse" for future revenue generation potential.

• Profitability Unknown: Absence of detailed profit & loss data limits analysis of operational profitability. However, the growing retained earnings deficit suggests ongoing losses or insufficient profits to offset costs.

• Going Concern: Directors affirm the going concern assumption, indicating confidence or necessity to continue operations despite financial challenges.

• Directors’ Support: Non-interest bearing loans from directors provide a "lifeline", but reliance on related-party funding can be a red flag if it substitutes for sustainable cash flow.

• Potential Tax Risk: Ongoing HMRC VAT review introduces uncertainty and potential future liabilities.

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4. Recommendations: Path to Financial Wellness

• Urgent Liquidity Management:
  Implement robust cash flow forecasting and rigorous debtor collections to improve working capital. Explore options to refinance or restructure short-term debt to ease immediate pressure.

• Debt Restructuring:
  Engage lenders to renegotiate terms or consider alternative financing with longer maturities or equity injections to reduce debt servicing burden.

• Cost Control and Profitability Focus:
  Conduct a thorough review of operating expenses and pricing strategies to restore profitability and halt further erosion of reserves.

• Capital Injection:
  Consider raising equity capital to strengthen the balance sheet, reduce leverage, and provide a buffer against financial shocks.

• Regular Financial Monitoring:
  Institute monthly management accounts and key performance indicators (KPIs) to monitor financial health indicators and detect early distress symptoms.

• Address Tax Uncertainty:
  Proactively liaise with HMRC to clarify VAT position and mitigate potential liabilities or penalties.

• Director and Stakeholder Communication:
  Maintain transparent communication with directors, shareholders, and creditors about financial status and recovery plans to sustain confidence.

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Medical Analogy Summary

Miller & Eanes Property Solutions Ltd currently exhibits symptoms of financial distress akin to a patient with chronic illness marked by a weakened immune system (negative equity) and poor circulation (negative working capital). The company’s financial bloodstream is under strain from mounting debt and insufficient liquidity, requiring immediate intervention to stabilize and restore health. Without prompt treatment—cash flow improvement, debt management, cost control—the prognosis worsens, risking insolvency.

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