Company Number: 13256110

Analysis Date: 2025-07-29 16:40 UTC

Financial Health Assessment of PE7 PROPERTIES LTD as at 31 March 2024

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1. Financial Health Score: D

Explanation:
The company shows signs of financial strain with net current liabilities and negative shareholders' funds, indicating a fragile financial position. However, it remains active and compliant with filing deadlines, suggesting potential for recovery with corrective actions.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£404,196	Reasonably strong short-term asset base, mainly property inventory
Cash & Cash Equivalents	£1,465	Critically low cash reserve, poor liquidity "pulse"
Current Liabilities	£405,768	Slightly exceeds current assets, creating working capital "deficit"
Net Current Assets	-£1,572	Negative working capital, symptom of short-term liquidity strain
Shareholders’ Funds	-£1,576	Negative equity indicates accumulated losses or funding gaps
Share Capital	£4.00	Minimal capital base, limited financial "immune system"
Filing Compliance	Up to date	Healthy compliance "routine check-up"
Employee Count	0	No employees, possibly low operating overheads

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3. Diagnosis: Financial Condition

PE7 PROPERTIES LTD operates in the buying and selling of its own real estate, with inventories (property stock) forming the bulk of its current assets. The company’s "financial vital signs" reveal a persistent negative net current asset position over the last four years, indicating the company consistently has more short-term obligations than assets to cover them. This is a classic symptom of cash flow stress and potential liquidity risk.

The very low cash balance (£1,465) is a "weak pulse" indicating minimal immediate liquidity to cover unforeseen expenses or short-term debts. Negative shareholders’ funds suggest the company has accumulated losses or liabilities exceeding its asset base, which is a concerning "chronic condition" for financial health.

However, the directors have confirmed going concern status, implying they have plans or assurances for support over the coming year. The company has no employees and minimal share capital, which might reduce operational expenses but also limits financial flexibility.

The absence of an income statement limits visibility into profitability, but the negative equity and working capital deficits strongly hint at operational or investment challenges.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity ("Restore the heartbeat"):
  Increase cash reserves through additional capital injection from shareholders or short-term financing solutions. This will help meet immediate liabilities and reduce liquidity risk.

• Working Capital Management ("Strengthen the immune response"):
  Review and optimise management of current liabilities and receivables to reduce the negative working capital. Negotiating longer payment terms with creditors or accelerating property sales could help.

• Capital Structure Enhancement ("Build financial resilience"):
  Consider increasing share capital or converting some liabilities to long-term debt to improve shareholders’ funds and reduce pressure on current liabilities.

• Operational Efficiency and Profitability ("Treat underlying symptoms"):
  Although no employees are on record, ensure that the cost structure is lean and that property assets are actively managed to generate sales or rental income.

• Detailed Financial Monitoring ("Regular health check-ups"):
  Prepare and review full profit and loss accounts to identify profit drains or opportunities. This will guide strategic decisions to restore profitability.

• Stakeholder Communication:
  Maintain transparent communication with shareholders and creditors to build confidence and avoid potential distress.

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