PLOT 61 LTD

Executive Summary

PLOT 61 LTD is facing significant liquidity and solvency challenges, reflected in negative working capital and shareholders' funds. The company’s financial health is fragile, primarily due to high short-term liabilities dominated by a directors’ loan. Immediate action to improve cash flow, reduce liabilities, and strengthen equity is essential to avoid further deterioration.

PLOT 61 LTD - Analysis Report

Company Number: 14499361

Analysis Date: 2025-07-20 16:58 UTC

Financial Health Assessment for PLOT 61 LTD (FY ending 30 Nov 2023)

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1. Financial Health Score: D

Explanation:
PLOT 61 LTD shows significant financial distress with net current liabilities exceeding current assets by over £41k, resulting in negative working capital and net liabilities of approximately £15k. This indicates the company is not currently in a healthy financial state and faces liquidity challenges. The negative shareholders' funds reinforce concerns about solvency and capital adequacy.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	4,328	Very low; includes cash (£664) and debtors (£3,664)
Current Liabilities	45,735	High short-term obligations, mainly directors' loan (£45,135)
Net Current Assets	-41,407	Negative working capital; a symptom of liquidity strain
Net Assets	-15,383	Negative net worth; liabilities exceed assets
Shareholders' Funds	-15,384	Equity deficit; company is technically insolvent
Tangible Fixed Assets	26,024	Asset base mainly furniture and equipment; indicates limited fixed assets
Directors' Loan	45,135	Large related party debt contributing to liabilities
Average Employees	9	Small workforce, typical for a small company

Vital Signs Analysis:
The company’s liquidity is severely compromised, with current liabilities over 10 times its current assets. The predominant creditor is the director’s loan, which while often flexible, still represents a significant liability. Negative net assets signal that the cumulative losses have eroded the share capital and reserves.

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3. Diagnosis: Financial Condition Overview

PLOT 61 LTD is in a precarious financial condition resembling a patient with severe symptoms of distress — negative working capital and net liabilities are clear warning signs. The large director’s loan, while common in small private companies, contributes heavily to short-term creditor pressure. The company is in its early stage (incorporated late 2022), and the financials reflect the usual challenges of a new business establishing operations and financing.

The negative equity position suggests accumulated losses or investments exceeding retained earnings, and the company currently lacks a buffer to absorb shocks or fund growth without external support.

However, the fact the company is still active and compliant with filings, and has a modest asset base, indicates it may still have potential to stabilize if underlying issues are addressed.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity ("Restore Healthy Cash Flow")
  Prioritize converting debtors to cash faster and manage creditors carefully. Explore restructuring or formalising the director’s loan into longer-term financing to reduce immediate pressure.

• Capital Injection or Equity Restructuring
  Consider fresh equity investment or converting part/all of the director’s loan into equity to improve net assets and reduce liabilities.

• Cost Control and Profitability Focus
  Review operating expenses and employee cost structure for efficiency gains to stem losses and improve profit margins.

• Financial Forecasting and Monitoring
  Implement regular cash flow forecasting to anticipate liquidity needs and avoid surprises. Monitor key metrics monthly.

• Engage Professional Advice
  Consult with financial advisors or insolvency practitioners early if cash flow issues persist, to explore turnaround options before distress worsens.

• Strategic Review of Business Model
  Given the industry (real estate management and letting), ensure contracts and revenue streams are stable and aligned with market conditions.

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Medical Analogy Summary

PLOT 61 LTD currently exhibits "symptoms of financial distress" — akin to a patient with low blood pressure and weak pulse—poor liquidity and negative equity. Without intervention (capital infusion, debt restructuring), the risk of "financial collapse" increases. However, since the company is still "alive" and compliant, timely treatment could restore it to "financial health."

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