N E PROPERTY MAINTENANCE (SUSSEX) LTD

Executive Summary

N E Property Maintenance (Sussex) Ltd is a young, small-scale construction business showing stable but very tight liquidity and equity positions. Its financial health is cautiously satisfactory with positive working capital but limited buffer against shocks. Strengthening cash reserves, improving profitability tracking, and proactive financial planning are key to enhancing resilience and supporting sustainable growth.

N E PROPERTY MAINTENANCE (SUSSEX) LTD - Analysis Report

Company Number: 13816172

Analysis Date: 2025-07-29 15:49 UTC

Financial Health Assessment: N E Property Maintenance (Sussex) Ltd

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1. Financial Health Score: C+

Explanation:
The company shows basic financial stability with positive net current assets and shareholders' funds, but the margin is very slim. The cash position is just slightly above current liabilities, indicating a fragile liquidity state. The company is young (incorporated late 2021) and small in scale, which naturally limits its financial depth and resilience at this stage. Given these factors, the financial health is cautiously satisfactory but vulnerable to shocks.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2023 Value (£)	Interpretation
Cash at bank	7,546	A modest cash reserve, slightly improved from last year, indicating some ability to meet short-term obligations.
Current Liabilities	7,409	Obligations due within a year, primarily tax and social security liabilities.
Net Current Assets	137	Positive but very narrow working capital buffer—company can meet short-term debts but with minimal cushion.
Shareholders' Funds	137	Equity backing is minimal, reflecting early-stage accumulation of retained earnings or capital.
Number of employees	1	Indicates a micro-business size, with limited operational scale and resource flexibility.
Turnover & Profit Data	Not disclosed	Income statement not filed as per small companies exemption, limiting full profitability insight.

Additional Notes:

• The company operates in specialised construction and building finishing segments (SIC 43999, 43390, 43290), which often require project-based cash flow management.
• Cash and liabilities have increased slightly but remain closely matched, a symptom of tight liquidity.
• No audit was required, typical for a small company, but also means less external assurance on financial accuracy.
• The director holds full control, indicating centralized decision-making.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The financial vital signs suggest a business that is currently stable but operating on a very thin margin of safety—like a patient whose vital signs are normal but borderline. The positive net current assets and shareholders' funds indicate no immediate insolvency threat, which is a good sign ("healthy heartbeat"). However, the narrow gap between cash and current liabilities ("thin pulse") signals potential vulnerability if unexpected expenses arise or if cash inflows slow down.

The absence of an income statement means we cannot assess profitability or revenue trends directly, a key symptom missing for a full diagnosis. However, the stable working capital and incremental cash increase over the last year suggest the company is managing its operations without significant distress.

The fact that the company is very small and recently incorporated means it is still in the "growth and establishment" phase, where financial resilience tends to be limited. The single employee status also implies limited operational capacity and potentially reliance on the director’s direct involvement.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Cash Reserves: Aim to increase cash holdings to cover at least 3 months of current liabilities, creating a buffer against liquidity shocks—like boosting the "immune system" against financial stress.
• Detailed Profitability Tracking: Even if exempt from filing, maintain internal profit and loss statements to identify revenue trends and cost control opportunities, allowing early detection of "symptoms" such as declining margins.
• Diversify Income Streams: Consider expanding client base or service offerings within the construction sector to reduce dependency on a narrow set of contracts, improving long-term "vitality."
• Formal Financial Planning: Develop a cash flow forecast and budget to anticipate and manage short-term liquidity needs proactively.
• Consider External Financing Carefully: If growth opportunities require capital, explore small business lending or investor input cautiously to avoid over-leverage.
• Maintain Compliance and Transparency: Continue timely accounts and confirmation statement filings to avoid regulatory "infections" such as penalties or reputational damage.
• Director Oversight: Since the director holds full control, ensure robust governance practices and risk management to prevent operational or financial "ailments."

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