NMC PROPERTY SOLUTIONS LIMITED

Executive Summary

NMC PROPERTY SOLUTIONS LIMITED is an early-stage company showing critical financial distress with negative net assets and poor liquidity. Immediate interventions to improve cash flow and manage liabilities are necessary to stabilize the business and avoid insolvency risks.

NMC PROPERTY SOLUTIONS LIMITED - Analysis Report

Company Number: 14555418

Analysis Date: 2025-07-20 11:32 UTC

Financial Health Assessment: NMC PROPERTY SOLUTIONS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress marked by negative net assets and a large imbalance between current liabilities and assets. While it is early in its life cycle (incorporated late 2022), the current financial "vital signs" indicate symptoms that require urgent attention to avoid worsening financial health.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£156,782	Reasonable investment in long-term assets; healthy sign of asset base.
Current Assets	£331	Extremely low liquid assets (cash or receivables), a warning sign of poor short-term liquidity.
Current Liabilities	£176,165	Very high short-term obligations, a critical symptom of financial strain.
Net Current Assets (Working Capital)	-£175,834	Negative working capital indicating inability to cover short-term debts with liquid assets; a key distress symptom.
Total Assets Less Current Liabilities	-£19,052	Negative value indicates liabilities exceed assets, an unhealthy financial position.
Net Assets (Shareholders’ Funds)	-£19,772	Negative equity shows insolvency on a balance sheet basis; severe symptom of financial weakness.
Employees	0	No staff costs, potentially limiting overhead, but also possibly indicating limited operational capacity.

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3. Diagnosis

The financial "vital signs" reveal a company in the early stages of operation but already showing critical symptoms of financial distress:

• Liquidity Crisis: The extremely low current assets (£331) compared to very high current liabilities (£176,165) indicate the company lacks the "healthy cash flow" to meet immediate obligations. This imbalance poses a risk of default or supplier payment delays.

• Negative Net Assets: The company’s total liabilities exceed its assets by about £20,000, a key diagnostic sign that the business is insolvent on a balance sheet basis. This implies that even if all assets were liquidated, they would not cover outstanding debts.

• Zero Employees: While this reduces payroll expenses, it may also signal a lack of operational capacity to generate revenue or manage business processes effectively.

• Early Stage but High Risk: Being incorporated only in December 2022, the company is still in its infancy. However, the financial "symptoms" suggest it is struggling to establish a stable financial footing.

• Ownership and Control: Two directors each hold 25-50% ownership and have significant control, implying decisions are centralized, which can be positive if management acts decisively but may also increase risk if lack of diverse oversight.

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4. Recommendations

To improve financial wellness and stabilize the company’s health, management should consider the following steps:

1. Enhance Liquidity:

   • Secure short-term financing or increase capital injections to raise current assets, specifically cash, to meet current liabilities.
   • Review payment terms with creditors to extend liabilities where possible.

2. Operational Review:

   • Evaluate business model viability given current financial stress.
   • Consider generating revenue streams rapidly or reassess asset utilization to convert fixed assets into cash if feasible.

3. Cost Management:

   • Maintain tight control on overhead costs given zero employees but anticipate costs related to growth.
   • Avoid additional liabilities until liquidity improves.

4. Financial Monitoring:

   • Implement rigorous cash flow forecasting to anticipate liquidity gaps.
   • Monitor creditor aging and establish early warning systems for financial distress.

5. Stakeholder Communication:

   • Keep shareholders and creditors informed of financial condition and recovery plans to maintain confidence.

6. Professional Advice:

   • Seek specialist financial or restructuring advice early to explore turnaround strategies or protect against insolvency risks.

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Summary

NMC PROPERTY SOLUTIONS LIMITED currently exhibits serious financial distress, characterized by negative net assets and a severe liquidity shortfall. Immediate attention to improving cash flow and reducing liabilities is essential to avoid insolvency. With prompt and decisive management action, the company may stabilize and build a healthier financial foundation.