Company Number: 14094081

Analysis Date: 2025-07-20 16:25 UTC

Financial Health Assessment for MYB PROPERTIES LTD as of 31 May 2024

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1. Financial Health Score: D

Explanation:
The company is currently showing financial distress signs, with negative net assets and net current assets indicating liquidity pressure and solvency concerns. While the company is still operational (active status), its balance sheet portrays symptoms of financial strain that need urgent attention to avoid further decline.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash at Bank	1,066	491	Very low cash reserves, indicating limited ability to cover short-term obligations promptly.
Current Liabilities	110,153	110,143	High short-term liabilities relative to cash and current assets—potential liquidity stress.
Net Current Assets (Working Capital)	-54,717	-46,900	Negative working capital signals difficulty in meeting short-term debts with current assets.
Total Assets Less Current Liabilities	95,610	103,327	Slightly decreasing, reflecting overall asset coverage after short-term liabilities.
Creditors due after one year	110,153	110,143	Substantial long-term debt, a heavy leverage load for a relatively small company.
Net Assets (Shareholders’ Funds)	-14,543	-6,816	Negative net worth indicating liabilities exceed total assets—an unhealthy financial position.
Investment Property (Fixed Assets)	150,227	150,227	Stable asset base in property, but valuation alone is not enough to offset liabilities.

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3. Diagnosis

Symptoms Analysis:
MYB PROPERTIES LTD exhibits symptoms akin to a patient with "cardiac stress" in financial terms—high liabilities both short and long term, with meagre cash reserves, create strain on liquidity and solvency. The negative net current assets (working capital deficit) reveal the company may struggle to meet immediate debts, which is a critical symptom of financial distress. The negative net assets indicate the company’s total liabilities exceed its assets, a sign of balance sheet insolvency.

The company’s primary asset is investment property, held steady at £150k valuation, which is a positive "organ function" but burdened by large debts (£110k bank loans + £55k current creditors). Cash holdings are minimal, implying poor "blood flow" (cash flow), which may affect day-to-day operational viability. The director’s loan and other creditors suggest reliance on related party or short-term financing, which may not be sustainable long term.

The company has not undergone audit due to its size, and accounts are prepared under the small companies’ regime, which may mean limited external scrutiny. The absence of turnover and profit and loss data limits full assessment, but sustained losses reflected in retained earnings (-£14,643) corroborate the negative equity position.

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4. Prognosis

If current trends persist—negative working capital, limited cash reserves, and heavy debt load—the company risks worsening liquidity crises. Without improvements, this could lead to insolvency or forced restructuring. However, the stable valuation of investment property offers a potential asset base that could be leveraged or sold to improve financial health if managed prudently.

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5. Recommendations

To improve financial wellness, MYB PROPERTIES LTD should consider the following actions:

• Improve Liquidity ("Restore Healthy Blood Flow"):
  Increase cash reserves by enhancing cash collections, reducing expenses, or injecting additional capital. Consider negotiating extended payment terms with creditors to ease short-term pressure.

• Restructure Debt ("Relieve Cardiac Stress"):
  Engage with lenders to refinance or restructure both short and long-term debts to more manageable levels and terms, potentially reducing interest burden and improving cash flow.

• Asset Review and Monetization:
  Evaluate the investment property portfolio for opportunities to sell underutilized assets or raise funds via refinancing or sale-leaseback arrangements to strengthen the balance sheet.

• Financial Monitoring and Forecasting:
  Implement robust cash flow forecasting and financial controls to detect early signs of distress and plan accordingly. Regularly review financial metrics akin to monitoring vital signs.

• Explore Additional Revenue Streams:
  Since financial statements do not show turnover, focus on generating steady income from property management or letting activities to enhance profitability.

• Director’s Loan Management:
  Clarify and formalize director loans to avoid potential conflicts and ensure transparency in financial dealings.

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Executive Summary