NEW WINE PROPERTIES LTD

Executive Summary

NEW WINE PROPERTIES LTD shows early signs of financial distress with negative net assets and working capital, indicative of liquidity and solvency challenges typical in start-up phases. Immediate actions to strengthen liquidity through capital infusion and cost control are vital to restoring financial health. With careful management, the company can stabilize and build a sustainable foundation in its real estate management operations.

NEW WINE PROPERTIES LTD - Analysis Report

Company Number: 15120994

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment: NEW WINE PROPERTIES LTD (as of 31 December 2024)

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress signals, including negative net current assets and net liabilities. This indicates a fragile financial position that requires urgent attention. While the company is newly incorporated and small (micro-entity), the balance sheet suggests it is operating with more liabilities than assets, which is a concern for sustainability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Net Current Assets	-8,037	Negative working capital ("symptom of cash flow distress"), indicating current liabilities exceed current assets. This can impair the company’s ability to meet short-term obligations.
Total Assets Less Current Liabilities	-8,036	Negative value suggests total assets are insufficient to cover current liabilities.
Net Assets (Equity)	-13,080	Negative shareholders’ funds indicate the company is technically insolvent on a balance sheet basis ("symptom of financial strain").
Called up Share Capital Not Paid	1	Minimal capital injection; very limited equity cushion.
Creditors (Current + Non-current)	13,081 (8,037 + 5,044)	Total liabilities exceed assets, increasing risk of insolvency if unaddressed.
Number of Employees	1	Micro-entity with minimal operational scale, which limits complexity but also scale of operations.

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3. Diagnosis

• Symptom Analysis: The company presents clear signs of financial distress:
  • Negative net current assets imply liquidity challenges, risking difficulties in paying short-term debts.
  • Negative net assets (equity) reflect an insolvency symptom from an accounting perspective, indicating that liabilities outweigh all assets.
  • The presence of non-current liabilities (£5,044) adds to long-term financial obligations, which may strain future cash flows.
• Underlying Causes: Given the company was incorporated recently (September 2023), the negative financial position could be due to start-up costs, initial borrowing, or expenditure exceeding revenue generation.
• Operational Status: The company is active, with a single director who is also the sole significant controller, which may allow for agile decision-making but also concentrates risk.

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4. Recommendations

To improve financial wellness and avoid progressing to insolvency, the company should consider the following:

• Improve Liquidity ("Restore Healthy Cash Flow"):

  • Seek additional equity injections or capital contributions from shareholders to rebuild net assets and cover liabilities.
  • Negotiate extended payment terms with creditors to ease short-term cash pressure.
  • Accelerate debtor collections if applicable.

• Cost Management:

  • Review operational expenses critically, reduce non-essential costs to minimize cash outflows.
  • Consider scaling operations to match available resources.

• Financial Monitoring:

  • Implement rigorous cash flow forecasting and budgeting to detect liquidity gaps early.
  • Maintain up-to-date financial records for timely decision-making.

• Long-term Strategy:

  • Explore revenue-generating opportunities in property management and real estate services to build sustainable income streams.
  • Consider professional advice on restructuring liabilities or accessing external financing with manageable terms.

• Governance:

  • The sole director should ensure compliance with Companies House filing deadlines and maintain transparent communication with stakeholders about financial health.

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