Company Number: 14719010

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment: PELLCHESTER GREEN LIMITED (As of 31 March 2025)

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1. Financial Health Score: B

Explanation:
PELLCHESTER GREEN LIMITED demonstrates a solid improvement in financial health over the last two years, moving from a net liability position (-£5,378 in 2024) to a positive net asset base (£296,707 in 2025). The company shows healthy growth in fixed assets and a strengthening equity position. However, the relatively high level of long-term liabilities and modest working capital require cautious monitoring to ensure sustained financial wellness.

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2. Key Vital Signs:

Metric	2024	2025	Interpretation
Fixed Assets	£306,589	£640,802	Significant investment in long-term assets, indicating expansion or asset acquisition.
Current Assets	£263,877	£364,381	Increased liquidity buffer; positive sign of asset management.
Current Liabilities	£417,827	£246,442	Decreased short-term obligations; reduces liquidity pressure.
Net Current Assets (Working Capital)	-£153,950	£120,542	Transitioned from negative to positive working capital, indicating improved short-term health.
Creditors due after one year	£158,017	£464,637	Long-term debt increased significantly; need to monitor debt servicing capability.
Net Assets (Equity)	-£5,378	£296,707	Moved from negative to positive equity, showing recovery and capital strength.
Employee Count	0	0	No employees; likely asset-holding entity or outsourced operations.

Interpretation of Vital Signs:

• The company has shown "symptoms of recovery" with growing equity and positive working capital, which are key indicators of financial "vitality."
• The large increase in fixed assets suggests asset acquisition or capitalisation, which could be a good sign of investment for future income but also raises the need to assess financing structure.
• The current liabilities decrease paired with increased current assets improves liquidity, suggesting a healthier cash flow position in the short term.
• However, the substantial rise in long-term creditors (from £158k to £465k) introduces a "stress symptom" that needs monitoring, as higher debt levels can strain future cash flow if not managed properly.

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3. Diagnosis:

PELLCHESTER GREEN LIMITED is currently in a recovering and strengthening financial condition. The company has moved from a position of negative equity and negative working capital to a stable and positive net asset position and positive working capital within one year. This indicates effective management of short-term obligations and an increase in asset base. The absence of employees suggests this company operates primarily as a property holding or investment vehicle rather than an operational business with payroll obligations.

The large increase in long-term liabilities, however, signals a reliance on debt financing, likely linked to the acquisition of fixed assets. This "debt symptom" should be carefully managed, as overleveraging could potentially lead to cash flow difficulties if income streams do not adequately cover debt servicing costs.

Overall, the company shows healthy financial "pulse" but with some caution warranted on the long-term debt front.

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4. Recommendations:

• Debt Management:
  Review the terms and repayment schedule of the long-term liabilities to ensure the company can meet its obligations without liquidity stress. Consider refinancing options if interest rates or repayment terms are onerous.

• Cash Flow Monitoring:
  Maintain close monitoring of cash inflows and outflows to ensure the working capital remains positive and there are no "warning signs" of cash shortages.

• Asset Utilisation:
  Since fixed assets have nearly doubled, evaluate if these assets are generating the expected returns or rental income. Optimising asset utilisation will improve profitability and cash generation.

• Capital Structure Review:
  Aim to gradually reduce reliance on debt by building retained earnings or injecting equity, thus strengthening the balance sheet and reducing financial risk.

• Strategic Planning:
  Given no employees and the nature of the business (real estate letting), ensure that operational costs are controlled and property management is efficient to maintain profitability.

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