MINORS & BRADY PROPERTIES LTD

Executive Summary

Minors & Brady Properties Ltd has a stable asset base and positive equity but faces significant liquidity challenges, indicated by negative working capital. While solvent, the company should focus on improving cash flow and managing short-term liabilities to strengthen financial resilience. Proactive debt management and capital infusion would enhance its financial health and operational stability.

MINORS & BRADY PROPERTIES LTD - Analysis Report

Company Number: 13150102

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

Financial Health Assessment for Minors & Brady Properties Ltd

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1. Financial Health Score: C

Explanation:
Minors & Brady Properties Ltd shows a mixed financial health profile. The company has positive net assets and shareholders' funds, indicating some equity buffer, but it suffers from significant net current liabilities (negative working capital), which signals potential liquidity stress. The company is solvent but shows early symptoms of financial strain requiring attention to improve short-term cash flow and reduce current liabilities.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£210,957	Represents investment in long-term property assets, stable and slightly increased from prior year.
Current Assets	£297	Very low current assets (cash/debtors), indicating limited liquid resources for immediate needs.
Current Liabilities	£102,939	High short-term obligations, increasing from previous years, creating liquidity pressure.
Net Current Assets (Working Capital)	-£102,642	Negative working capital—a "symptom of distress" suggesting cash flow constraints.
Total Assets Less Current Liabilities	£108,315	Reflects assets after covering short-term debts, stable but slightly declining.
Creditors > 1 Year	£87,274	Substantial long-term liabilities, requires careful servicing and planning.
Net Assets (Equity)	£21,041	Positive but low equity base, improved from £13,264 last year, indicating small financial cushion.
Share Capital	£2	Minimal share capital, typical for micro-entities, limited capital injection.
Average Employees	2	Very small operation size consistent with micro-entity category.

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3. Diagnosis:

• Liquidity Symptoms: The company exhibits "symptoms of distress" in liquidity management. Negative working capital means current liabilities far exceed current assets, implying difficulty meeting short-term obligations without additional financing or asset sales.
• Solvency Status: Despite liquidity concerns, the company remains solvent with positive net assets and equity, reflecting that long-term asset backing exceeds total liabilities.
• Asset Base: Fixed assets have increased modestly, suggesting ongoing investment or appreciation in property holdings, which is typical for a real estate letting business.
• Growth and Profit Retention: The net asset growth over the year (+£7,777) reflects some retained earnings or capital injections improving shareholder equity.
• Risk Factors: Heavy reliance on long-term creditors and low liquid reserves mean the company could face operational strain if revenue or financing conditions worsen.
• Size and Complexity: Operating as a micro entity with only two employees suggests a lean structure but also limited capacity to absorb financial shocks.

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4. Recommendations:

1. Improve Working Capital Management:

   • Increase current assets through better cash flow management, such as accelerating debtor collections or negotiating longer payment terms with suppliers.
   • Consider short-term financing options to cover liquidity gaps and avoid operational disruptions.

2. Debt Restructuring:

   • Review the terms of short- and long-term liabilities to potentially refinance or restructure debt, aiming to reduce the burden of current liabilities.

3. Capital Injection:

   • Evaluate the possibility of additional equity capital or shareholder loans to strengthen the financial base and reduce dependence on creditors.

4. Operational Efficiency:

   • Monitor operating costs and optimize property management to increase net income and cash inflows.

5. Financial Monitoring:

   • Implement regular financial health checks focusing on liquidity ratios (e.g., current ratio, quick ratio) to detect early signs of distress.

6. Strategic Planning:

   • Given the property letting industry, consider market conditions and rental income stability to forecast future cash flows and prepare for economic fluctuations.

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Medical Analogy Summary:

Much like a patient with a healthy heart but low blood pressure, Minors & Brady Properties Ltd has a strong asset "heart" (fixed assets and equity) but suffers from low liquidity "blood pressure," making it vulnerable to sudden financial shocks. Addressing liquidity issues is critical to avoid acute financial distress and ensure long-term vitality.

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