MILTONS KEYS PROPERTIES LTD
Executive Summary
Miltons Keys Properties Ltd shows early warning signs of financial stress with negative net assets and zero working capital, relying heavily on loans to finance its property assets. Without improving liquidity and generating steady revenue, the company risks deteriorating financial health. Immediate focus on debt restructuring, capital infusion, and revenue growth is essential to restore financial stability.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
MILTONS KEYS PROPERTIES LTD - Analysis Report
Financial Health Assessment for Miltons Keys Properties Ltd (Year ended 31 March 2023)
1. Financial Health Score: C
Explanation:
Miltons Keys Properties Ltd exhibits some concerning signs of financial strain, notably negative net assets and shareholders’ funds. The company is in its early stage (incorporated 2022), operating in property letting, with tangible assets held primarily in property. While it holds fixed assets of £120,000, the existence of liabilities exceeding assets and zero net current assets indicate financial stress. The absence of an operating profit or positive retained earnings means the company is yet to demonstrate a healthy cushion against financial risks. Hence, the grade "C" reflects a company with potential but with symptoms requiring careful management and improvement.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Fixed Assets (Property) | £120,000 | Tangible asset base providing collateral and business foundation. |
Current Liabilities | £122,019 | Short-term debts are substantial, matching or exceeding asset base — a warning sign. |
Net Current Assets (Working Capital) | £0 | No buffer for day-to-day operations, indicating tight liquidity. |
Net Assets (Total Equity) | -£2,019 | Negative net assets mean liabilities exceed total assets, a symptom of financial distress. |
Shareholders’ Funds | -£2,119 | Negative equity confirms accumulated losses or capital withdrawals. |
Turnover | Not disclosed | No turnover data provided; if minimal or zero, this exacerbates risks due to lack of revenue. |
Employees | 0 | No staff employed, consistent with a holding or investment property company, but limits operational capacity. |
3. Diagnosis
The company presents symptoms akin to a patient with an underlying chronic condition but without acute collapse. The tangible fixed asset of £120,000 (property) is the cornerstone, yet current liabilities exceed this, putting the company in a precarious position. Negative net assets and shareholders’ funds highlight that the company has either incurred losses or drawn down capital, leading to insolvency risks if current trends continue.
The zero net current assets suggest no working capital cushion to manage day-to-day operational expenses without additional financing or revenue inflows. The presence of bank loans and director loans totaling £122,019 indicates dependency on external funding, which could be a double-edged sword: necessary for operations but creating financial strain through interest and repayment obligations.
The absence of turnover and employees may indicate that the company is either newly established with limited trading history or is primarily a property holding entity with minimal operational activity. This situation requires a healthy cash flow from rental income or asset sales to sustain and improve financial health.
Overall, the financial "symptoms" indicate a fragile state requiring immediate attention to avoid progression towards insolvency.
4. Recommendations
Improve Liquidity:
Seek to improve working capital by either increasing short-term assets (cash or receivables) or reducing current liabilities. Consider negotiating longer repayment terms on loans or restructuring debt to ease immediate pressure.Revenue Generation:
Clarify and boost turnover through letting activity or other property-related income streams. A steady, predictable cash inflow is vital to cover liabilities and build reserves.Capital Injection:
Consider equity funding or additional director loans to shore up negative shareholders’ funds, improving the balance sheet and creditworthiness.Cost Management:
Since there are no employees, fixed operational costs may be low, but managing administrative and financing costs will help preserve cash.Financial Monitoring:
Implement regular financial reviews focusing on cash flow forecasting, liability management, and asset valuation (especially if property values fluctuate).Professional Advice:
Engage with financial and legal advisors to explore options for refinancing, tax planning, and risk management to prevent future distress.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company