MORRISONS PROPERTY MANAGEMENT LIMITED

Executive Summary

Morrisons Property Management Limited shows financial signs of distress with negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. While still compliant and operational, urgent actions on cash flow and balance sheet strengthening are recommended to improve the company’s financial health and sustainability.

MORRISONS PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13033053

Analysis Date: 2025-07-29 13:55 UTC

Financial Health Assessment for MORRISONS PROPERTY MANAGEMENT LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with negative net current assets and shareholders' funds for the latest year. While still operational and compliant with filings, the balance sheet indicates more liabilities than assets, suggesting liquidity challenges. This score reflects caution; the business is not in immediate collapse but exhibits symptoms requiring urgent attention.

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2. Key Vital Signs

Metric	2023 (£)	Interpretation
Fixed Assets	1,656	Very low fixed asset base; typical for micro business.
Current Assets	3,363	Includes cash, receivables; low but positive.
Current Liabilities	5,630	Debts due within one year exceed current assets.
Net Current Assets	-2,267	Negative working capital; potential liquidity risk.
Total Assets less CL	-611	Overall net liabilities; balance sheet in deficit.
Shareholders' Funds	-611	Negative equity; company owes more than owns.
Share Capital	2	Nominal paid-up capital; minimal buffer.
Number of Employees	2	Very small workforce; typical micro entity.

Interpretation:

• The company’s negative net current assets reveal that it owes more in short-term debts than it can cover with its liquid assets. This is a classic symptom of cash flow distress or working capital strain.
• Negative shareholders’ funds (equity) indicate that the company’s liabilities exceed its assets, which can be a red flag for solvency concerns.
• The low fixed asset base and micro-entity status suggest the business operates with minimal physical resources and scale.
• The company remains compliant on filings and not overdue, which is a positive administrative sign.

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3. Diagnosis: Financial Condition

MORRISONS PROPERTY MANAGEMENT LIMITED is currently in a financially fragile state, exhibiting symptoms similar to a patient with weakened vital signs. The negative working capital and equity suggest the company may struggle to meet short-term obligations without external intervention or improved cash flows. Such a condition often points toward underlying operational inefficiencies, delayed receivables, or excessive short-term borrowing.

However, the company is still active, has a small employee base, and maintains statutory compliance, which provides some resilience. The micro classification implies limited financial complexity but also limited resources to absorb shocks.

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4. Prognosis

If left unaddressed, the current financial strain could worsen, potentially leading to liquidity crises or creditor actions. However, as a micro-entity, the business may stabilize with improved cash management, restructuring of payables, or capital injection. The prognosis depends substantially on management’s ability to correct these imbalances and restore “healthy cash flow” dynamics.

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5. Recommendations

• Improve Cash Flow Management: Accelerate collection of receivables and carefully manage payables to avoid liquidity crunches.
• Explore Capital Injection: Consider additional equity or shareholder loans to restore positive net assets and strengthen the balance sheet.
• Cost Control: Review operating expenses and employee costs to align with current revenue generation capacity.
• Short-Term Debt Restructuring: Negotiate with creditors to extend payment terms or reduce liabilities where possible.
• Regular Financial Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early symptoms of distress and act proactively.
• Seek Professional Advice: Engage financial advisors specializing in turnaround and small business finance to support recovery planning.

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