MY PROPERTY CLUB LIMITED

Executive Summary

MY PROPERTY CLUB LIMITED shows positive short-term liquidity but suffers from significant long-term liabilities leading to negative net assets. This puts the company in financial distress needing urgent restructuring and capital strengthening to ensure sustainable growth and solvency.

MY PROPERTY CLUB LIMITED - Analysis Report

Company Number: 13157995

Analysis Date: 2025-07-20 16:28 UTC

Financial Health Assessment for MY PROPERTY CLUB LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financials show significant and persistent net liabilities (negative net assets) over recent years, indicating a state of financial distress. Despite growth in current assets, the long-term liabilities heavily outweigh assets, and shareholder funds remain deeply negative. The score "D" reflects concerns that need urgent attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets (Shareholders Funds)	-£90,239	Negative net assets indicate insolvency on the balance sheet; liabilities exceed assets.
Fixed Assets	£20,995	Stable but relatively small; represents long-term investments.
Current Assets	£131,580	Healthy liquid assets showing improved cash or receivables.
Current Liabilities	£46,219	Manageable short-term debts; significantly lower than current assets, indicating positive short-term liquidity.
Net Current Assets (Working Capital)	£85,361	Positive working capital signals ability to cover short-term obligations comfortably.
Long-Term Liabilities	£195,695	Large long-term debt burden contributing to negative net assets.
Employees	8	Increased from 2 last year, suggesting business growth or expansion.

Interpretation of Vital Signs:

• The positive net current assets ("healthy cash flow") suggest the company can meet immediate obligations, a promising symptom.
• However, the large long-term liabilities are the core "symptom of distress," causing a negative net asset position and risking insolvency if not managed.
• The negative net assets reflect accumulated losses or funding gaps, akin to a patient with a chronic underlying disease.
• Employee growth hints at operational scaling, but this may increase cost pressures if not matched by revenue growth.

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3. Diagnosis

MY PROPERTY CLUB LIMITED is currently experiencing financial distress due to a heavy burden of long-term liabilities that exceed its total assets, resulting in negative shareholders’ equity. While the company maintains healthy liquidity in the short term (positive working capital), the long-term financial structure is unsustainable without corrective action.

The company’s micro-entity filing status means limited disclosure, but the available data shows a worrying trend of net liabilities increasing from -£44k in 2021 to -£90k in 2024. This suggests ongoing losses or high debt servicing costs.

The symptoms include:

• Persistent negative net assets (similar to a chronic illness).
• Increasing employee headcount without corresponding asset growth, possibly increasing overheads.
• Large long-term liabilities that must be addressed to restore financial health.

Without intervention, the company risks insolvency or difficulty securing funding, which would impede growth plans.

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4. Recommendations

Immediate actions to improve financial wellness:

• Debt Restructuring: Engage creditors to negotiate terms on long-term liabilities. Lowering interest rates or extending repayment can alleviate pressure.
• Capital Injection: Consider fresh equity investment or shareholder loans to improve net asset position and strengthen balance sheet.
• Cost Control: Review and optimize operational expenses, especially with increased headcount, to prevent cash flow strain.
• Revenue Enhancement: Focus on boosting sales or diversifying services to increase current assets and profitability.
• Financial Monitoring: Implement regular financial reviews and cash flow forecasting to detect early signs of distress.
• Seek Professional Advice: Consult insolvency practitioners or restructuring experts if debt burden becomes unmanageable.

By addressing the root cause—the long-term liabilities and negative equity—the company can move towards a healthier financial state, much like treating the underlying disease rather than just symptoms.

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