PR PROPERTY MANAGEMENT CAMBRIDGESHIRE LTD

Executive Summary

PR Property Management Cambridgeshire Ltd is currently experiencing financial distress evidenced by negative working capital and shareholders' funds over consecutive years. While operationally compliant, the company must urgently strengthen liquidity and restructure capital to restore financial stability and support sustainable growth in its property management activities.

PR PROPERTY MANAGEMENT CAMBRIDGESHIRE LTD - Analysis Report

Company Number: 13921747

Analysis Date: 2025-07-29 18:02 UTC

Financial Health Assessment of PR PROPERTY MANAGEMENT CAMBRIDGESHIRE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress, particularly a persistent negative net current asset position (working capital deficit) and negative shareholders' funds over the past three years. The absence of employees and limited asset base further constrain operational agility. While not yet insolvent or in formal distress proceedings, the financial figures suggest vulnerability that requires urgent attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	733	486	Very low; limited liquidity
Current Liabilities	1,360	1,230	Slight increase, short-term debts exceed assets
Net Current Assets (Working Capital)	-627	-744	Negative; indicates cash flow strain
Total Assets Less Current Liabilities	-627	-744	Negative net assets; liabilities outweigh assets
Shareholders' Funds	-627	-744	Negative equity; accumulated losses

Interpretation of Vital Signs:

• The company’s "blood pressure"—its liquidity—is weak, with current liabilities exceeding current assets, signaling difficulty to cover short-term obligations.
• The "heart rate"—operational activity—is minimal, given no employees and micro-entity status, suggesting limited business scale or growth.
• Negative shareholders' funds represent a chronic deficit in capital, akin to "anemia" in financial health, limiting ability to absorb shocks or invest.
• The slight improvement in current assets in 2024 is a positive sign but insufficient to offset liabilities.

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3. Diagnosis

The company is in a fragile financial condition characterized by persistent working capital deficits and negative equity. These are symptoms of ongoing financial strain, often arising from either insufficient revenue generation, high operating costs, or initial startup losses without adequate external capital injections. As a micro-entity with no employees, the business likely operates with minimal overhead but also limited income streams.

Key observations:

• The company has operated at a loss or with net liabilities since inception.
• Lack of employees may reduce fixed costs but also indicates limited operational capacity.
• Directors hold significant control but must consider capital restructuring or infusion to restore balance sheet health.
• No overdue filings or liquidation proceedings indicate compliance and operational continuity.

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4. Recommendations

To improve financial wellness, the company should consider the following steps:

• Strengthen Liquidity ("Restore healthy blood flow"):
  Increase cash reserves through equity injections or short-term financing to cover immediate liabilities and prevent solvency risks.

• Capital Restructuring ("Rebuild the skeletal structure"):
  Address negative shareholders’ funds by considering capital contributions, debt-to-equity swaps, or seeking new investors to restore positive net assets.

• Revenue Enhancement and Cost Control ("Improve metabolic rate"):
  Develop strategies to grow income streams within the property management sector, focusing on fee-based contracts (as per SIC codes). Tighten cost management to reduce expenses.

• Financial Monitoring ("Regular health check-ups"):
  Implement robust cash flow forecasting and budgeting to anticipate and manage liquidity challenges proactively.

• Explore Professional Advice:
  Engage financial advisors or turnaround specialists to evaluate restructuring options and operational improvements.

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Executive Summary