ORHAN AND BILGE PROPERTY LTD

Executive Summary

ORHAN AND BILGE PROPERTY LTD currently faces liquidity challenges and very limited equity, reflecting early-stage financial stress. Immediate steps to improve cash flow and strengthen capital structure are recommended to stabilize the company's financial health and ensure future viability.

ORHAN AND BILGE PROPERTY LTD - Analysis Report

Company Number: 15161213

Analysis Date: 2025-07-20 18:56 UTC

Financial Health Assessment for ORHAN AND BILGE PROPERTY LTD (as of 30 September 2024)

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress with a very low net asset base (£447) relative to its liabilities and a negative working capital position. While the company is newly incorporated and in the micro-entity category, the balance sheet indicates weak liquidity and high leverage, which lowers the overall financial health grade.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	102,841	Represents long-term property holdings; asset base is solid
Current Assets	2,871	Very low short-term resources available
Current Liabilities	32,535	Obligations due within one year; significantly exceeds current assets
Net Current Assets (Working Capital)	-29,664	Negative; indicates short-term liquidity problems (“symptom of cash flow distress”)
Long-Term Liabilities	72,730	High debt or creditor obligations beyond one year
Net Assets (Shareholders’ Funds)	447	Minimal equity cushion; “barely alive” financial position
Average Number of Employees	2	Small workforce, consistent with micro entity

Vital Signs Interpretation:

• The company holds substantial fixed assets, likely property, which is typical given its SIC code (real estate letting/operating).
• However, the current liabilities far outweigh the current assets, showing a critical liquidity issue—this is a classic “symptom of distress” where the company may struggle to meet short-term obligations.
• The net assets are almost negligible, meaning equity holders have very little buffer against losses or creditor claims.
• The company is young (incorporated Sep 2023), so these results reflect early-stage financial positioning but still raise caution flags.

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3. Diagnosis

Overall Financial Condition:
ORHAN AND BILGE PROPERTY LTD is currently in a precarious financial state characterized by poor liquidity and very limited equity. The large proportion of long-term liabilities relative to its fixed assets and negligible net assets suggests significant financial leverage risk. The negative working capital means the company may face challenges in paying off short-term debt without additional funding or asset sales.

Being a micro-entity, the company has minimal reporting obligations, and the absence of audit reduces external assurance on financial robustness. The dual director control by the owners (Orhan and Bilge Mustafa) means strategic decisions are centralized, which can be an advantage for swift action but also a risk if financial oversight is weak.

Symptoms of Financial Stress:

• Negative working capital (net current liabilities) is a red flag for liquidity problems.
• Minimal equity signals potential solvency concerns if losses arise.
• Large creditor balances suggest high dependency on external financing or delayed payments.

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4. Recommendations

To improve financial wellness and avoid worsening financial health, the company should consider:

1. Improve Liquidity Position:

   • Increase current assets by accelerating receivables collection or increasing cash reserves.
   • Negotiate with creditors to extend payment terms or reduce short-term liabilities.

2. Capital Injection:

   • Consider additional equity investment from shareholders or external investors to strengthen net assets and provide a buffer against losses.

3. Debt Management:

   • Refinance or restructure long-term debt to reduce financial strain and align repayments with cash flow.

4. Operational Efficiency:

   • Monitor and control operating costs given the small scale of operations and limited resources.

5. Financial Monitoring:

   • Implement robust cash flow forecasting and financial controls to detect and respond to distress signals early.

6. Strategic Asset Utilization:

   • Evaluate fixed assets for potential monetization or optimization to improve liquidity.

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Summary

ORHAN AND BILGE PROPERTY LTD, a recently formed micro-entity in the real estate sector, displays concerning financial symptoms including negative working capital and minimal equity reserves. These "symptoms of distress" highlight liquidity challenges that could jeopardize operational stability if unaddressed. Prompt measures to bolster cash flow, restructure debt, and inject capital are essential to restore financial health and support sustainable growth.